#dax $dax

Weekly chart continues to show a bearish MyWave with price sat above the Ichimoku Cloud but restling with the pink dashed resistance line. The RSi is still negative but both this and the stochastics are stood upwards. Whilst price holds under that resistance line, I am assuming price want to test lower.

The daily chart shows a lacklustre response to pushing through the daily cloud, in eiether direction, and therefore with the overbought stochs, overbought volatility channel and downward facing Ichimoku cloud, I am anticipating a drift down towards the 9500s. Whilst the daily MyWave is blue and bullish, I am working with the belief that the move is corrective into that zone.

The 4hr RSi continues to show negative divergence, but anticipate this 'popping' to the upside when this correction is over. With the cloud uphill, a retest of this fits with the above scenario, where the 200sma and volatility channel low sits. The daily 200sma sits at the same place too, as in the chart above (orange lines).

So, the downward travelling regression channel points to the 61.8% retracement at 9529 from 9369 low and with the hourly cloud turning down and the 4hr (see above) & hourly MyWaves both red, I see no reason to think northbound for now. Add in the REFM model posted earlier and I am looking for 9600 ish to bank today's shorts or I'll be flat above 9750.