DAX/SPX Ratio and EW Pattern Show Potential Resistance For DAXDec 7, 2023

DAX/SPX Ratio and EW Pattern Show Potential Resistance For DAX That Can Cause A Slow Down On German Stocks

Just a week ago we shared a free chart of DAX, in which we are tracking wave 5 of an impulsive rally that is now already at all-time highs, a potential resistance that can cause a corrective slow down. CLICK HERE

So bullish trend is back, but keep in mind that we have five waves up on 4h time frame, so traders should be aware of a limited upside and potential A-B-C retracement in weeks ahead. Some wave 5=1 resistance is at 16600 now. Break below the trendline support of an impulse channel will put temporary top in place.

DAX/SPX Ratio and EW Pattern Show Potential Resistance For DAX DAX 4H Chart
DAX 4H Chart

Another reason why DAX can slow down is also DAX/SPX (DAX against SP500) ratio chart, which is clearly bearish and it may easily resume lower within higher degree wave 5 soon, as we have pretty nice bearish setup formation. Ratio is telling us that SP500 can ourperform DAX in upcoming months.

DAX/SPX Ratio and EW Pattern Show Potential Resistance For DAX DAX/SPX Daily Ratio Chart
DAX/SPX Daily Ratio Chart

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