The DAX looked like setting an ending diagonal, however quite close to the previous corrective wave it stopped and was brutally reversed. Today DAX took out the previous lows, which means the ED is invalidated and the rally off the lows, even though was a 5 wave impulse, was most likely just a C wave of a flat and part of a sub-wave 4 correction.
The dax also took out the previous bottom at the August crash low.
2 scenarios are now on the table:
- either the 4th wave ended at the C wave high at 10.500 and we have resumed the decline
- or this 4th wave is puttin in a more complex expanded flat. In this case the violation of the previous August low is premitted since in a flat, the B wave can retrace more than 100% of A.
If we stop in this general area without going too much down, there is a chance to see another vicious ramp back up to 10700-10800. If not, the bear is back for good and we should head a lot lower from here.
The mcm proprietary signals are signaling increased risk for downside action. Another evidence that the bear is back:
mcm-ct.com/blog/public/
Good luck to your trades!
The dax also took out the previous bottom at the August crash low.
2 scenarios are now on the table:
- either the 4th wave ended at the C wave high at 10.500 and we have resumed the decline
- or this 4th wave is puttin in a more complex expanded flat. In this case the violation of the previous August low is premitted since in a flat, the B wave can retrace more than 100% of A.
If we stop in this general area without going too much down, there is a chance to see another vicious ramp back up to 10700-10800. If not, the bear is back for good and we should head a lot lower from here.
The mcm proprietary signals are signaling increased risk for downside action. Another evidence that the bear is back:
mcm-ct.com/blog/public/
Good luck to your trades!
