Short Term Trading Member Forum

[techcharter]

DAX, Longterm Support Broken

From an e-wave view, the DAX should have found support around August '07 lows / 7200 because that was the beginning of the ending diagonal. The bear market is much stronger than I was anticipating at this stage in the selloff. The e-wave count from the highs in '00 has the DAX in a flat correction. The fibonacci ratio for WAVE A to WAVE B is 3 years / 5 years. WAVE C just started and should trace out an impulse wave (5 segments). My target is below 2000. This about where the dotcom bubble began in the 1990's.

Other technical approaches are just as unpleasant. The DAX broke the 5 yesr trendline from the lows in '03 to underside of the recent ending diagonal. It plunged through the 200 DMA without any sort of a retest. The 50 DMA is about to fall below the 200 DMA. The DAX will have made a double top, one in the year 2000 and this one in 2008.

http://stockcharts.com/h-sc/ui?s=$DAX&p=D&yr=1&mn=0&dy=0&id=p36252628878