Stocks are in a bear trend since the start of the year, after the FED came out with a hawkish policy outlook to fight the inflation, with other CB following the same decision. However, if the recession risk gets worse then this policy may quickly come to an end, and stocks could then be looking for a support after the first shock lower. Today, however, I want to look at the short-term picture on Elliott wave German DAX chart as I think that stocks are doing quite well, despite no “recession” word from the FED during the FOMC minutes this week, and despite a strong NFP number. Keep in mind that good data means more hikes, which equals to lower stocks. But stocks are holding some support despite these events, so IMO there is room for more upside next week.
So I found this technical development on DAX; an ending diagonal that completes five waves of decline from 14700 with a failure breakdown at 12470 March low. I think there is room for 13500 or higher while low is in place.
Trade well.
If you like what we do and want to track the EURUSD on a daily basis as the price action unfold then check our services at https://wavetraders.com/elliott-wave-plans/
Along with DAX, EURUSD is approaching multiyear support? Check our chart HERE