S&P500 and German DAX Look For A Recovery: Elliott Wave Analysis

13:30GMT CAD CPI and US Retail Sales, Crude Oil inventories at 15:30GMT and very important FOMC minutes at 19PM GMT.

German DAX Elliott Wave Analysis

Bearish move on stocks slowed down with European shares turning sharply higher as Russia-Ukraine conflict has calmed down a bit. Investors are more optimistic it seems if we respect what German DAX is doing; it’s making a nice and strong recovery that looks like an impulsive in progress.

On 4h chart, we see that German DAX index moving sideways, ideally within sub wave (C) of a wave D recovery that can see 15900-16k area.

S&P500 Elliott Wave Analysis

SP500 is coming down after US CPI figures last week and also following the US announcement that Russia will invade Ukraine. These are strong words so investors are going out of stocks, and that’s why we are seeing SP500 coming down even more from 4595 resistance, but so far only with three waves so it can even be a wave X as part of wave B) rally. Nice resistance remains at 78.6% near 4700-4750. Sharp drop to around 4300 will suggest that wave C) down is already underway.