Monday, 16 November 2009

DAX failure?

BOTTOM LINE: There are signs of a top in European (and specifically EURO area) equity indices.

Below is an hourly chart of the German DAX. I think chances are high that an impulse that began at the November 5316 low is very close to completion. This should result in, at the very least, a correction to that impulse, which could take us about 4-5% lower from current levels. I believe, however, that we are setting up an intermediate term top.

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