The classic 5-point reversal as mentioned since February, see here: (http://tinyurl.com/bv7kyy8), here (http://tinyurl.com/d4xjetx) and here (http://tinyurl.com/ceqg38x) is carving out as expected and we should see the index to break down aggressively very soon!
- DAX Daily - Its support trend-line since 2011 is clearly broken with last night's closing below the line.
- DAX Weekly - It also broke down from the bearish rising wedge that confirmed the daily pattern where further weakness is expected.
- The next key support is seen at 6,400-ish level though after this level the index will seek refuge at below 6,000 (i.e the support extended all the way back to 1980s level).
