S&P500 and German DAX Elliott Wave Analysis

European shares have seen sharp sell-off, as DAX made five waves down so looks like more weakness are coming after rallying in three waves. Frist resistance is at 15544, at former wave four, while the second resistance area is at 15900-16k. More weakness on DAX can cause limited upside on the euro as well.

DAX is sharply and impulsively down in the 4-hour chart after we noticed a completed five-wave cycle. So, seems like a new, higher degree A-B-C corrective decline is now in progress on a daily chart, which can send the price even lower, ideally back to the former wave 4 and 14800 support zone, but more weakness can be seen after a pullback in wave B.

German DAX 4h Elliott Wave Analysis

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SP500 is coming nicely lower within wave 4) correction into projected support zone 4630 – 4550 support zone, from where we can expect a continuation higher for wave 5). However, in case if SP500 goes below 4500 decisively, then wave 5) and temporary top can be already in place labeled as ALTernate count.

S&P500 4h Elliott Wave Analysis

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