Yesterday's drop, mostly fuelled by Deutsche Bank's 7.5% drop in share value on Merkel's statement that the German state would not bail out the bank, brought DAX down further than anticipated in yesterday's forecast. DAX went down to 10339 and has since seen a reversal signal on Germany denying that statement was made.
I expect a sharp move upwards to 10808 and possibly as high as 10860 or even 10935. Once this move up is completed, I expect a sharp and considerable drop as shown in my forecast for this week.
Trade closed: stop reached
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DAX did quite the opposite this morning and currently is creating an ascending wedge which is likely to take DAX even lower. The tell tale sign was at around 9AM on the 5M chart....