Do you remember what happened to Gold the other week? Well check this out on the DAX

On December 4/5, I warned readers about what has happened to gold, when it posted a massive outside, or Key Day reversal, as it is known. That led to more immediate downside and could have terminated the trend from rebounding back above, what was an all time record high at $2,135.39. Granted Gold is making more of a comeback today, but still some way south of that record high. So, right now I am looking closely that the DAX ahead of the close this evening and wondering if that might suffer the same fate? You see, the DAX opened at a record today, at 16,948. As you know, it then went onto set a new record high at 17,003 earlier this morning. As I write, the index is now falling below 16,700 and clearly at risk of closing below where it did yesterday, at 16,766. If it does close below 16,766 then we will have another huge outside day reversal. Now, I am not saying it will do that, but as you can see, with around an hour to go before the close, the index needs to rebound back above 16,766 in order to avoid a mother of all outside day reversals today, just like gold did some 10 days ago. We shall have to see if that happens today or not. The DAX is currently trading at 16,660