Based on expectations that ECB will announce a stimulus program extension tomorrow and improved mood on the Italian banking sector, european markets are surging today.
Dax opened this morning at 10890 i.e above 6 months resistance levels cited in Nov.10th post . I reiterate here same as 1 month ago i.e. « (Dax) …has the potential to go much higher IF it crosses the 10820-10850 on the upside on a closing basis …. Initial targets would be then set at 11400 and 11800 for 5 to 10% gains by end of year . »
Barring a quick reversal to below 10800 , the current move might be the start of a strong move as a year end rally for the german (and european markets as a whole) market.