While American indices continue to slide, the DAX is showing resilience. European indices are not following the U.S. into a deeper selloff, and in the case of the DAX, the move looks more like a controlled bearish correction than a full-scale reversal.
The price remains inside a wedge formation marked with blue lines. At the same time, the index is testing a green horizontal support, but importantly, it hasn’t even reached the lower boundary of the wedge—at least not today. As long as the DAX trades within this structure, sentiment can be considered cautiously positive, with buyers holding hopes of breaking above the first red resistance and eventually the upper wedge line.
The risk, however, is clear. A break below the green support and then the lower wedge boundary would flip the outlook sharply bearish. That would be a strong signal to go short and would confirm that the DAX has finally given up, joining American indices in a broader decline.