DAX Brexit aftermath
After the big ''shock'' that took place on the markets after the brexit vote was real, the markets are deciding what to do next. Central banks already stated they will keep providing liquidity to the markets. This means they will drive up the prices. Hedge funds and other investors know the real economy is on a global slowdown. Retail investors are locked in their long positions after the brexit decline, and are holding on to the illusion that markets will go up indefinitely. So now the battle is between the central banks trying to push markets up again, and the hedge funds being short and trying to take the central banks money. The next few weeks will be very interesting to see what will happen to the markets. IF the central banks are winning we will see a break of the bullish breakout zone, and after markets will try to reach and brake the resistance line for the 4th time. If this happens be prepared for the next trigger that will cause the markets to drop again, this time harder than we have seen before.
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