Elliott Wave View: DAX Looking for Further Downside

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 blue wave (3). From there, rally to 11566.97 ended blue wave (4) as a zigzag Elliott Wave structure. Red wave A of (4) ended at 11403.72, red wave B of (4) ended at 11208.60 and red wave C of (4) ended at 11566.97.

Decline from there is unfolding as an impulse Elliott Wave structure and a marginal low still can happen before ending the 5 waves down. This move lower also ended blue wave (5) and black wave ((3)) of a larger degree. Afterwards, expect black wave ((4)) rally 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.