Sunday, February 10, 2013
Elliott wave analysis of the German DAX Index
CJ asked me if I would take a look at the German Dax.
Here is my count for the German DAX. As can be seen I regard the entire price-action since the 2007 high at 8,151.57 as corrective. The high we have just seen at 7,871.79 is in my view wave b of an expanding flat correction, which began at 7,441.82, that means we should be looking for a powerful c-wave decline to below 4,965.80.
CJ also asked if I think a top is in place at 7,871.79 and I do think it's the case. The decline from the 7,871.79 does look impulsive in character, meaning that the decline is in five wave down. Short term I would look for a slight recovery towards 7,694.42, which marks the top of wave iv of one lessor degree and at the same time marks the 50% correction target of the decline from 7,871.79 to 7,537.29. Once wave ii is over we should see a powerful decline in wave iii down to 7,166 as a minimum.