German DAX fell sharply down this summer so we see price in big wave IV) pullback which could reach much lower levels by the end of the year, but after wave (B) rally is complete which seems to be underway now to higher levels. Ideally price will hit 10800 before downtrend will continue into wave (C).

On the 4h chart, German Dax has turned higher as expected last week, after the market completed a five wave decline in wave (A) a week before. We know that after every five waves market will make a retracement in three legs. Well, notice that index already made three waves up from the low so we must be aware of a new bearish leg to the downside. Ideally market will find a top in the next few days, at current 10200 zone, but top can be confirmed only if price goes beneath 9907 bearish level.

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