Friday brings us dynamic movements but mostly happening in oil and Indices. Trading on the currencies remains calm where traders still digest the press conference with Mario Draghi, which yesterday caused a huge upswing on the EUR.
WTI Oil from the mid-term highs that we saw yesterday moves fast to the situation where the sell signal becomes more probable. The price created a false breakout over the neckline and the 50% Fibonacci (red area). What is more, we broke lower line of the mid-term channel up formation. That gives sellers additional momentum and increases the chances for a downswing.
DAX has difficulties to push the price higher and is on a back foot defending the 12350 support for the third time in the last 3 weeks. This shows that the selling pressure is high and rises the possibility for a bearish breakout. We have to wait for the further price action but many traders are waiting here to open a short position once this support will be broken.
On the other side we have the S&P 500, which made new highs yesterday. Again. Although we can see a drop today, it is nothing compared to the situation on DAX. On S&P 500 we do have a healthy (maybe even too healthy, bubble?) up trend with a lot of supports underneath. Technically there are no signs for a reversal.