German Dax has turned positive as expected in the last few trading days, after the market completed a five-wave decline in wave (A) last week. We know that after every five waves, the market will make a three-leg retracement, notice that the market already made three waves up from the low, so we must be aware of a new bearish leg to the downside. Ideally, the market will find its footing around the current 10000 area this week.
This recovery at its late stages with the current black wave C as shown on the hourly chart below. We would not be surprised if the market will reach its climax in the next 24 hours. However, we need an impulsive drop back beneath 9800 to confirm end of a corrective recovery.
German Dax, 1h
