Today’s Call – Sell DAX from the open below 4766.0.

Despite Wednesday’s gains, yesterday’s forecast for DAX highlighted the potential for selling from close to 4926.0, a 50% recovery to June’s selling (5178.0-4673.0) and this happened as Thursday’s bearish outlook was confirmed with losses of over 150 Pts. Virtually all of the gains made from June’s low have been given up and daily signals continue to point lower – however, shorter term intraday signals are already oversold. This is likely to lead to some consolidation, or even profit taking buying, but any bounce is signalled to be temporary and the outlook for Friday is to sell rallies below 4766.0. The initial target to take profits is at 4700.0/05.0, yesterday’s low, a break here exposing sentiment to 4673.0/80.0, June’s base and then towards 4650.0/56.5, May’s low trade.

The risk however would be with buying back through 4766.0, the last 6 hour high, a cautious and temporarily positive signal improving sentiment to 4792.0, a recovery of 38% of the losses made since Wed (4931.5-4705.0), but then to probably no further than to 4819.0, a deeper 50% correction.