Dax retested 7014/7019 which we had expected to be the high for this bounce and indeed this held the top side once again as we drifted back below 6989/85 then 6961 with 6926/22 support holding the downside. The market is coming off from a short term over bought position with the 9 day crossing the 21 day MA to confirm our bearish outlook. An open below 6950 today targets 6926/22 then 6911/08. A break below here then signals a test of 6890/85 before recent lows at 6870. A break of 6864 today targets 6847 on the way to 6826.

7014/7019 remains tough resistance. However if we do see prices through 7024 look for 7052 next.

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