Last updated July 22, 2019
A lot has happened since the last update on July 8, and most of the price action has been down. This price action continues to leave much desired from a clean impulse perspective (compare to the BVSPA for example), and all we can content us with are overlapping waves that do push price higher. The DAX found support at its 50d SMA and price is above the important S/R zone, but has lost the short-term and longer-term uptrend channels for support.
Contrary to the SPX, for example, it made its ATH in early 2018 and not last week… Ideally the DAX is now in Primary B of Cycle-4. Since 4th waves are often flat corrections (A=B=C), the current B-wave can continue higher in its current horrible overlapping fashion before wave-C takes hold. Since B-waves are hard to forecast we’ll have to take this current rally day-by-day and watch how price behaves and is relative to its important simple moving averages. For now it can still allow for higher prices, but a break and close below the 50d SM targets 11700 based on simple symmetry.