Chart of the day: DAX tops out
The fragility of Europe's recovery is clear in the cautious rally that has run on Germany's Dax stock index. Support at 9,000 points formed the base of a broadening top to a series of higher highs and eventually a record 10,050 points. But a 10 per cent fall since Friday's close below 9,000 points and the previous week's close below the 200-day moving average is all very bearish. A cross with the 50-day moving average would give another bearish signal. The Dax could be headed to 8,100 points - the 38 per cent Fibonacci retracement of the high of March 2000 - with the psychological 8,000 points next in line before possibly the 50 per cent retracement mark at 7,500 points.
Nicole Elliott is a technical analyst