Irrational market is about to end

Jun 6, 2022

DAX
The macro condition is continuously deteriorating. Record braking inflation across the Euro Area, worsening supply chain issues, declining PMIs and lower consumer confidence. It's a non-stop barrage of negative news. Surprisingly enough, though, the indices have been having a great time.
But the last ray of light is about to be clouded with the ECB meeting looming this week. DAX is about to experience its first significant decline after a couple of weeks of resilient pumping.

As for technical analysis, we can observe a pretty clear double top forming at the ~14600 level, lowering volume and an exhaustion candle today - all pointing towards a reversal. Be wary of another low volume pump tomorrow but overall, expect a red weekly candle.