Short term Elliott Wave view on DAX suggests the decline from 3.29.2022 high is unfolding as a 5 waves diagonal. Down from 3.29 high, wave 1 ended at 13386.32 and rally in wave 2 ended at 14709.38. Index then resumes lower in wave 3 towards 12390.95, and rally in wave 4 ended at 13939.02. Wave 5 lower is currently in progress with subdivision a 5 waves impulse in lesser degree.
Down from wave 4, wave (i) ended at 13085.20 and rally in wave (ii) ended at 13375.05. Wave (iii) lower ended at 12758.44, wave (iv) rally ended at 13154.15, and final leg lower wave (v) ended at 12603.58 which completed wave ((i)). Wave ((ii)) corrective rally ended at 13564.83 with internal subdivision as a zigzag structure. Up from wave ((i)), wave (a) ended at 13051.57, wave (b) ended at 12617.40 and wave (c) ended at 13564.83. Index has turned lower again in wave ((iii)) of 5. Down from wave ((ii)), wave (i) ended at 12606.64 and wave (ii) rally ended at 12936.57. Near term, as far as pivot at 13939.02 high stays intact, expect rally to fail in 3, 7, or 11 swing for further downside.
