xjo weekend zoomba lounge, page-56

I've pointed out a few times that the DAX is the yardstick equity market for European sentiment. What a night it had. Up over 4% on very high volume, and it broke some key resistance levels (including the crucial 6400 mark), finishing at the high for the day.

The DAX broke down via a head and shoulders pattern about 6 weeks ago. Since then, it has formed an inverted pattern on the same neckline. If it worked on the way down, then there's an argument to suggest that it will work on the way up. A reversal of the reversal, if you like.

Yes it is fair to be cautious that this is all timed perfectly for the EOFY, but it might pay heed to leave our long term bearishness at the door and take the trade that is offered up here. If the German index is anything to go by, short term (next week) the markets are looking the most bullish they've been for a few months.