The Dax 40 bounces back as falling commodity prices ease inflation fears. Sentiment remains downbeat after the index fell through May’s low at 13300. However, a break above 13400 may prompt sellers to lift their feet off the pedal. The bulls will need to push past 13650 before the relief rally could gain traction. Otherwise, most buyers may be wary of going in with both hands for fear of catching a falling knife. On the downside, a fall below 12900 would trigger a new round of liquidation to March’s bottom next to 12500.
