Technical Analysis - DAX 30 and EUROSTOXX 50

The DAX 30 struggled during its upward move and sold off yesterday. Today the DAX gapped down and is now on the way to close the gap. In the next few days I am still expecting a move down to at least 6990/7000 and more likely down to the drawn trendchannel around 6940. That move down would finally close the gap at 6960. An overshoot to the downside to 6900 is possible but daily close below this trendline would be very bearish. Be very cautious around the 7000 area because a move below 6980/6990 would definitely hit many stops and 6940 could be reached within minutes.
A move back above 7300 during this week would be impressive and then my favourite scenario would be a retest of the 7500 level. Remember trade small positions because the headline risk is huge. A resolution in the debt talks in US and the markets could surge or on the other side a downgrade of the US and the markets could tank.

The EUROSTOXX 50 does not look as robust as the DAX 30 does. Since August 2009 the EUROSTOXX 50 has been moving sideways between 2500 and 3000. Since summer 2010 the index formed an upward trend which broke in May 2011. In July the EUROSTOXX retested this trend once again and failed. In my opinion the index will retest 2500 and if this level holds even a retest of 3000 is possible. If the EUROSTOXX 50 falls below 2500 a test of the 61.8% retracement around 2270 is imminent.