Elliott wave analysis of the German Dax Index

German DAX

CJ asked if I would take a look at the German DAX and give my short term view, which I of cause will be happy to do.

But before taking a look at the short term, I think it's important to know where we are in the bigger picture. I think that a major wave 4 triangle is developing. We most likely have just ended wave D or is very close to end wave D and see a major decline in wave E towards 5,905 at least and possibly even lower towards 5,000.

Short term a break below 7,530 will be the first good indication, that wave D is in place already and that wave E lower has begun, while a break below 6,955 will confirm that Wave E is indeed unfolding. However, as long as support at 7,530 has not been broken we couls still see a firm test of strong resistance at 8,141

Looking at the Equity markets World wide I think it would be prudent to ease the risk appetite or at least set levels, where the exposure will be eased dramatically.