DAX continues to make a new low and this week broke below 11/20 low (11009) suggesting that the move lower remains in progress. Near term Elliott Wave outlook calls for the decline to 11009.25 on 11/20 as Intermediate wave (3). From there, rally to 11566.97 ended Intermediate wave (4) as a zigzag Elliott Wave structure. Minor wave A of (4) ended at 11403.72, Minor wave B of (4) ended at 11208.60 and Minor wave C of (4) ended at 11569.47.
Minor wave (5) decline is unfolding as an impulse Elliott Wave structure and a marginal low still can happen before ending the 5 waves down. Down from 11569.47, wave 1 ended at 1136.07, wave 2 ended at 11410.52, and wave 3 ended at 10762.41. Expect a wave 4 bounce and then another leg lower to end wave 5 of (5). This move lower also ended Primary wave ((3)) of a larger degree. Afterwards, pair should bounce in Primary wave ((4)) in 3, 7, or 11 swing before the decline resumes again. We don’t like buying the proposed rally as the right side still remains lower. As far as Intermediate wave (4) pivot at 11569.47 high stays intact in the rally, expect the Index to extend lower.
DAX 1 Hour Elliott Wave Chart