Yesterday was a horrid day for DAX. It went up in the morning, when the futures opened and surpassed the 10.000 mark. Actual high was 10.019. And from there it went in a vicious decline to put in a daily low at 9.559. That’s 460 points in just one day!
Now anyone with access to the tools would have been forewarned to pay attention when it counted - at the 10.000 mark. As can be seen, 10.000 was highlighted with a buy X-treme and an X-tick to boot (on v-tick chart). When the market made the high above 10.000, a capitulation bar appeared. Now that’s a dangerous triple combo. And when the market reversed without the moving average getting a chance to get above that buy X, it was a clear sign that market was putting in an important pivot there.
Yet another sign to be cautious on the long side was that the market was still impulsing down on the 15-min and 60-min cycle - from the 10.100 area. And the 60min chart showed a bearish retracement signal at 10.019, which was the high of the day.
Just a regular day in the life of the dax tick tools...