Sunday, July 31 2016
The flow reverts, and we hope the market reverts the tone we had during July. DAX (future and count charts) prices are again above June 23rd’s maximums, thus overriding the possibility of a newly born downward impulse pattern on June 24th’s minimums. This is how the wave count looks, as we anticipated last week: the fifth wave of the pattern initiated on March 2009 began on June 24th’s minimums.
DAX-Xetra. Daily chart.
The end of wave 1 (9806 at the count chart, and 9706 at the future chart) limits the correction that may occur when the current upward segment gets exhausted. This exhaustion may have already occurred last Thursday, if 10380 is not surpassed.
DAX-Xetra future. Hourly chart.
At Eurostoxx, we can also keep considering the movement as exhausted at Wednesday’s or Thursday’s maximums.
DAX showed a small terminal pattern after the count chart closed: it didn’t have the development we expected; it stopped at 10315, but supports the scenario of a ceiling at 10380.