DAX 1995-2018: Elliott Wave Review From A Cycle Degree Perspective!

This is the 4th world index that I looked at recently. It looks like the DAX investors have had a wild ride in the past and now it’s coming back!  The DAX history is linked to the US markets as the DAX crashed and burn right along with US stock exchanges. Back at the 2000 bubble, I thought there could be an expanded flat, but it also works as a great diagonal 5th wave in Minor degree. After 2000 the bottom fell out of the DAX but this DAX crash counts out very well as a zigzag.

The zigzag bottomed in early 2003, after which the DAX took off in yet another bull market. The DAX also counts out well as a set of 5 waves in Minor degree. “In a bull market “every” 5th wave top must be joined or connected to a one higher degree number.  So in mid 2007 the 5th wave in Intermediate degree topped, but also stopped on a wave 3 in Primary degree. After which it crashed again.

Then by early 2009 the DAX bottomed right along with the rest of the world, but also participated in the 2009-2018 bull market. The 5th wave in Primary degree counts out very well as higher quality 5 waves, which keeps it out of the diagonal wave classification. I could only squeeze the 5th wave in Primary degree into the chart, which should be capped. The 2018 peak, is a wave 3 in Cycle degree, not SC degree and especially not GSC degree. Being out by just one degree, we can be out by a mile, so we want to take care about what we stick onto the 2018 peaks.

All my DAX peaks are ending with a wave 3 count and so are all my other indices that I work with.

A friendly warning, “Don’t trust any wave count ending with a 5”  from anywhere on the Internet. They have broken the Elliott Wave sequence, if they don’t cap any bull market 5th wave.

To confirm any future Cycle degree 4th wave correction, it will take a very attentive wave analyst to keep tracking the DAX which I don’t have but I will track some of the bigger turns when I can.  It’s the crowd psychology that is being damaged as they don’t know what to do with all this volatility. One expert claims that this is the most volatility he has seen in the markets in his entire  career.  What? Stay tuned as youv’e seen nothing yet!

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