Blake Morrow’s EDGE Chart of The Day – ECB Stopped the German DAX Rally!
The German DAX has been riding high (new all-time highs) due to the expectations that the ECB (European Central Bank) would be providing some needed rate cuts in the near future to the ailing German economy and the Eurozone. The DAX, as a result, has rallied to all-time highs in recent weeks. Following the ECB meeting the DAX is now seeing a technical bearish engulfing candle and looks poised to retest the breakout point at 16570. The ECB meeting was considered a “hawkish hold” as they try to temper expectations of a rate cut near term. In turn, the German DAX may fall as expectations of a rate cut are reduced.