Today we’re watching the GER30 as price looks to be setting a new continuation idea. We need to see a strong close today, but for now, in the European session, signs are looking ok.
This idea and pattern is a very close copy of what we discussed ed in the US30 article but just from a different take.
The GER30 has set a fast trend of the new primary trend. This trend has also broken the downtrend, and today has started to form new support from an old area of resistance which could confirm as a new demand area. Last week we saw the first break of that resistance area, and today we could be seeing it become support.
If we see a higher close today and a follow-up rally tomorrow, that could set us up with a date at last week’s high that also lines up with resistance. A break above that area, and yes, we could have a new up leg on our hands.
A failure to beat that resistance level or a fade on today’s rally with further selling tomorrow that takes us back below the demand area is a worry and could suggest buyer strength might not be as strong as we are thinking now.
Another possible curve ball could be from tomorrow’s NFP data. Payrolls are expected to come in lower and average earnings higher. A miss could send stocks lower, and a beat should have a positive impact. The NFP will be released at 8:30 EST tomorrow.
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