The Dax has now fallen below the 50-day moving average. The next psychological support at 16,380 and then 15,912

Taking a look at the DAX as the German index has now fallen below the 50-day moving average. The 50MA is more significant than the 20MA so a move below it can be seen as a warning sign for the short-term. The index has also broken through the support of 16,443, hence, the next key ‘psychological’ support lies at 15,912. This seems to be correlating with the 100MA even though it is a lagging indicator. Of course, the index may find some support before reaching, if at all, the level of 15,912. This would have to be evaluated at the time of any consolidation signs, until then, the bias seems to have shifted to bearish for the short-term outlook. We can see the short-term bias is supported by the technical indicators as the MACD continues to fall and so does the RSI, now reading 39.