Global stocks are turning up, with the German DAX Index looking very strong.
In Elliott wave language, the German DAX is acting very impulsively with its rally away from the 15000 level.
That said, we will expect a retracement soon, in either a higher degree A-B-C pullback or maybe for black wave 4 (alt count), before the market resumes higher.
German DAX 30 Min Elliott Wave Analysis Chart
On the 4-hour price chart for the German DAX, we can see that it is moving sharply higher. This may be due to the change to the DAX40 which reflects the addition of 10 new companies to the index.
So far we can see a sharp reversal higher which is looking very impulsive; we have to respect this strong bullish price action. This also comes after a 3 wave drop from the August high. I see that as a contra-trend move that represents wave four of a higher degree… so be aware of the potential for more upside after a potential pullback into wave 2)/B).
German DAX 4h Elliott Wave Analysis Chart
On daily chart, the German DAX is turning up and away from our support levels (of wave four), so it looks like the index may be ready to resume its uptrend.
German DAX Daily Elliott Wave Analysis Chart
Twitter: @GregaHorvatFX
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