Originally published by AxiTrader
The DAX managed to break above 13.000, but failed to gather significant momentum. What is preventing the index from achieving similar performance as the Dow Jones Industrial Average, which has been posting fresh records for the past few days?
The Catalonian crisis is still something that keeps investors in Europe worried. The Catalonian leader refused to backtrack on the independence proclamation. Today, the government in Madrid announced that it will suspend the region´s autonomy. Investors are worried that the situation could escalate again.
Meanwhile, the German earnings season had a mixed start. The Q3 numbers of the German software giant SAP (NYSE:SAP) arrived below expectations. Tomorrow, Daimler (DE:DAIGn) will release its latest numbers and traders are hoping that this will give the DAX a bit of a lift.
From a technical perspective, the uptrend in the DAX is clearly intact. However, with sentiment slightly shifting and the short-term trend showing first signs of exhaustion, DAX bulls should be worried. A clear break below 12.900 points could signal that a larger correction could follow.
