Our last post on the German DAX called for a pullback and then new highs.
As you can see by the charts below, the Wave Principle has worked well as we have been watching this very important index for the world economy.
The next question is where are we now?
My interpretation is we have another leg down (corrective) for one final move up into the target zone over the coming months.
However, note the Monthly Log chart below and how price is holding on very crucial support. If we get a monthly close below that line and are unable to regain the trend above it, I’ll have to rethink my count.
Also, from the last point, I spent some time looking at the Big Wave 4 correction and have decided to label it a triangle based on the log scale. It fits more nicely with the “TIME” of Big Wave 2 in form, proportion and balance.
The next couple of weeks will certainly give us an idea where we are at with regard to the German DAX. Stay tuned!
Be sure to check out my unique analysis of stocks, commodities, currencies over at Bart’s Charts. Stay tuned and thanks for reading.
Author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.