DAX has broken below Oct 26 low (11051) and suggests that the Index has resumed the decline lower. We are calling the decline from July 27 high (12886.83) as a triple three Structure where decline to 11051.04 low on Oct 26 ended blue wave (Y) and bounce to 11692.91 high on Nov 2 ended second blue wave (X).
Down from 1162.91, short term view suggests that it ended the cycle from 11/02 in red wave W. The internals of that decline unfolded as an structure (5-3-5) which ended black wave ((a)) at 11/12 (11310) and black wave ((b)) at 11/14 peak (11567). Below from there it ended black wave ((c)) of red wave W at 11/20 low (11010). Above from there it is currently in the process of correcting the cycle from 11/02 peak in red wave X and as long as the bounce stays below 11692.91 we expect Index to extend lower.
We don’t like buying the Index and expect rally to fails in 3, 7, or 11 swing as far as at Nov 2 high (11692.91) stays intact.