The DAX 30 index is struggling to hold the 12,900 support, and the SPX 500 Index remains buy on dips near the 2,590 level.
The DAX 30 index started a recovery from the 12,850 support zone, but failed to gain traction. There was a move above the 23.6% Fib retracement level of the last decline from the 13,574 high to 12,844 low.
However, the index failed near the 13,200 resistance and a major bearish trend line with current resistance at 13,050 on the 4-hours chart. Moreover, the 50% Fib retracement level of the last decline from the 13,574 high to 12,844 low also acted as a major resistance.
The index is trading lower once again and seems to be struggling to hold the 12,900 support. There are chances that the index might break the 12,900 support and trade towards 12,500 in the near term. On the upside, the 13,050 and 13,100 levels are major barriers for buyers.
Today in the Euro Area, the German Gross Domestic Product for Q3 2017 was released by the Statistisches Bundesamt Deutschland. The forecast was slated for the GDP to increase by 2.6% in Q3 2017 compared with the same quarter a year ago.
However, the actual result was lower than the forecast, as the GDP increased by 2.3%, similar to the last reading. Looking at the quarterly change, there was a rise of 0.8% in the GDP, which was in line with the market forecast.
Overall, the result was not positive, and might impact the DAX 30 index in the near term.
There SPX 500 Index remains in a major uptrend and it recently managed to move above the 2,600 level.
A high was formed at 2,602 from where a correction wave was initiated. The index has moved below the 23.6% Fib retracement level of the last wave from the 2,569 low to 2,602 high.
On the downside, there is a major bullish trend line forming with support at 2,580 on the 4-hours chart. The same trend line support is close to the 50% Fib retracement level of the last wave from the 2,569 low to 2,602 high.
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