This is a brief update, I don't have much time to extend a long discussion,
instead I will rely on the charts in order to show a potential path.
I will use as the preferred count the same one I am working with for SPX =
Double Zig Zag wave (X) although in the case of the DAX the wave (W) bottomed
much higher than the preceding wave (A), similar to a running flat corrective
pattern.
Therefore like SPX, the DAX from the March 09 lows is unfolding a countertrend
(corrective) wave (X). Once the wave (X) is in place, provided price does
not substantially breach the 2007 top, the next directional move should be
to the down side towards the March 09 lows.
In the weekly chart below I show a potential Double Zig Zag for the wave (X).
This count in my opinion is consistent with the ovearall internal structure,
above all for the sequence from the March 09 low - July 07 high = First Zig
Zag.
But so far it is not clear yet if price is unfolding another Ending Diagonal
in order to complete the second Zig Zag.
Nonetheless the negative divergence of the weekly RSI (it remains below its
September peak) and an overbought weekly Stochastic are suggesting that price
could be involved in an ending pattern.
Contact: If you would like to contact the author, you can e-mail him
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The main objective of this project is to share my views on several markets
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In the initial stage TWT website will be a free service.
My main focus will be the equity market with SPX being the leader but I will
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My analysis is based upon traditional Technical Analysis, Elliot Wave guidelines
and investor sentiment.
My goal is to establish the most likely path that the price of a particular
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