Investors are starting to price in a delay in both the vaccine and the fiscal stimulus, which could actually be a bearish sign for the equity markets.
The DAX is now dropping toward the uptrend line from summer lows, which is near 12,500 EUR. If this level is taken out, we could see a quick drop to 12,400 EUR, where September's lows are located. The next stop for bears would probably near 12,200 EUR.
Sentiment seems negative, and it looks like bearish days are much more intense than bullish days.
Alternatively, if the dip will be bought, the first intraday resistance could be spotted near 12,750 EUR, and if the index jumps above this level, a retest of the 13,000 EUR threshold could be in play.
The medium-term trend appears neutral as DAX is now exactly where it was in late June. It needs to rise above 13,500 EUR or fall below 12,200 EUR for the possibility of a trend to start.