Looks like a turning point
Our oversold indicator reached extreme level, that was not seen even during the 2008 financial crisis turmoil. Anyway, the underlying indicator is showing a little improvement as can be seen from the picture below. At this point, we are expecting the law of inertia to bring the condition for supply and demand to "balanced" level. Before we reach the level, Dax has two options: to consolidate or reach higher level. We are expecting the latter to happen.
20-day highs versus lows showing improvement. As can be seen, the conditions was very abnormal when above indicator (orange line) reached it's minimum point.
Normalised TRIN made surged nicely to positive levels which is needed to achive higher levels for the underlying index.
Ok, the volume hasn't accumulated yet. This would be, the last confirmation for (mid-term) bulls.
Overall the situation looks very promising for bulls. The market could turn into positive before earnings report. The risk/reward for long positions looks very promising at these levels.
