S&P500 and DAX Approaching Support: Elliott Wave Analysis

DAX Elliott Wave Analysis

DAX is falling sharply and impulsively from the all-time highs, so seems like it’s trading now in a monthly higher degree A)-B)-C) corrective decline, where wave A) on a daily chart could be still in progress. Looking at the 4-hour chart, we can see it now trading in wave 5 of an extended wave 5) or alternatively wave 3), so be aware of rebound and recovery at least in three waves back to 13k area soon.

S&P500 Elliott Wave Analysis

US stocks are still falling following EU and China stock market sell-off, but US stocks are doing quite well and we still see SP500 in corrective movement from the highs, ideally within a complex (W)-(X)-(Y) pattern which can be nearing the end. We actually see SP500 trading in final stages of wave C of (Y), where ideal support would be around that Fibo. cluster target and 4000 – 3900 area.

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