Dax bounced nicely on the big support earlier in August. The index itself is trading in a dull trend seen on an overall level. There is no real trend and the index oscillates around the 200 day average. Over/undershooting the long term moving average is met with bounces or sharp reversals lower.
There is one longer term trend down that has been in place since year highs, as well as a short term trading trend that DAX has traded within since the June sell off started.
We have once again seen DAX turn on the shorter term trend after almost reaching the 200 day average. The longer term consolidation within the negative trend and the support just north of 12k continues.
Realized vol (orange) is also down trading in line with the implied volatility here.
Euro Stoxx 50 is showing a similar picture as the DAX. Non trend trading is the theme and it seems to continue for now. It seems the consolidation needs to continue until stocks change hands and a new trend can resume. Note the 200 day average just below the 3500 level.
Source: charts by Bloomberg