Steve Lucas from 3c Analysis anticipates a sell-off in the markets this morning given the weak and worrying economic data coming out of the US and Europe.

Both the FTSE and French CAC were down as investor’s concerns over rate hikes from the Federal Reserve increased. Steve believes the DAX Index will follow a similar trend. After reaching a record high last Thursday at 9822.5 the DAX Index has experienced a high level of volatility. Seller’s entered the market on Monday only to be quickly succeeded by buyers. The influx of buyers at the 50 and 100 day moving averages “immediately attracted sellers,” according to Steve.

With the downward momentum expected to continue, Steve is planning on selling the DAX Index at the market open and an intraday bounce to 9640. His targets for the trade are 9536.5 and 9460. A stop can be placed at 9665.5.

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