Below are a few charts updates of European index majors.
DAX is putting in an ugly candle today (again). As we explained last week, the index continues trading with a drag to the downside, although there is no huge trend lower. Once again the DAX turned on the trend line that has been in place since June highs.
First support is at the June and August lows. 12k is still the huge support to watch.
Euro Stoxx 50 is selling off as well. We have to admit that this index surely lacks steam to the upside. During this last bounce the index didn’t even touch the 50 day average.
Immediate support is at 3350, which are levels we bounced off earlier this summer. The big level to the downside is the 3300 level!
DAX (orange) and Euro Stoxx 50 (white) over past month in percentage terms.
DAX implied volatility continues spiking.
European fear index, V2X, pops higher today and trades above the 200 day average again. As we have expressed many times before:
“Buy volatility when you can, not when you must”
Source: charts by Bloomberg
