I believe that this year the saying "Sell in may and go away" won't work. We can see a very complex and time consuming correction. It is an irregular correction where wave (b) tops wave (a) (in red). The structure is 3-3-5. Wave (c) is unfolding and we can count 5 waves down. Wave 2 is very small and shallow. Wave 4 is again a complex correction. We should see a last wave 5 to complete wave (c) and after this wave is over we should see a strong impulse to 13000. The target for wave (c) is 200% of wave (a). The target for wave (5) is 50% or 61.8% of the distance of start of wave (1) to the endpoint of wave (3) added to the expected termination point of wave (4).
Good job but the index drop to 11400 level again. I wonder whether there is support at 11000.
Sokow
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Yes i was surprised too ;)
Have a new labeling for you. Like always there is more than one scenario possible, but this fits my view at the moment.
Sokow
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Alternatively the diagonal is already complete and we started wave v of C of (c) of (4). This wave should unfold in 5 waves.
jimmy_hongkong
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Sokow, it seems there is a very strong pressure at 11800-900 level. Do you still look for 12000-100?
jimmy_hongkong
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The Greek and Spanish index has dropped quite a lot today. Seems DAX will go down tomorrow. Is your target for long trade 12000+ still in play?
Sokow
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The target is still in play, but it gets lot more complicated than i thought.
jimmy_hongkong
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Many thanks, Mr Sokow. Hope the index is still in the uptrend and not falling too much tomorrow.
Sokow
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Alternative count:
jimmy_hongkong
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Sokow, It has dropped more than you expected yesterday, now it has fallen into the 0.5 support zone 11625. Have yo changed your mind for doing long trade to 12000+? I am afraid it would fall to 10800 area, what do you think?