European shares overcame a day of choppy action to close higher on yesterday session surrounded by speculation over bond-buying by the European Central Bank (ECB) and the results of an upcoming bank stress test. Today on the economic calendar we have from Germany the Markit Manufacturing PMI in October that is expected to drop below the 50 level signaling economy contraction. Ger30 is in a bearish phase since September and testing the 8,930 head and shoulders neckline. Yesterday the Index GAP up and initially tried to rally but found enough resistance at 8,930 and fell closing near the low of the day with a narrow range day, so we may expect a market expansion (wide range) in the next few days. Expecting a downward move to daily support at 8,639 on a break below previous day low at 8,857 (scenario 1) or a break above the daily resistance at 9,060 could push the Index to 9,366 the 50 day moving average (scenario 2). Ger30 is a CFD written over DAX30 futures.