S&P500 and German DAX Elliott Wave Cycles Point Further Highs

We also see a bounce on German DAX after it bottomed around 16200 as expected and sent index back into a new high for the fifth wave of 3. As such, be aware of a new minimum three wave retracement.

DAX is at a new high, now seen at the end of a five-wave rally within wave 3 on the 4h chart, so there can be some slowdown coming into a higher degree wave 4, especially if we also consider a divergence on the RSI. Potential support is 16000 psychological level, at the previous highs from August.

German DAX 4h Elliott wave Analysis

S&P500 is coming nicely higher for the last few weeks, unfolding a nice and clear bullish five-wave impulse on the 4h chart with price trading at all-time highs after a broken base channel that normally puts wave three of three in play. As such we will expect more upside after any retracement, especially after red wave 4) set-back. The upward projection for the current fifth wave of 3) is at around 4760-4800.

S&P500 4h Elliott Wave Analysis Chart