German DAX and S&P500 Looking for A Drop
German DAX can be trading at the end of a bigger, five-wave impulse labelled as wave 5. Wave 5 has already unfolded five of its legs, meaning a bearish reversal can be around the corner. Also, we see Fibonacci projection ratio of 161.8 and 261.8 being reached, which can react as resistances and push prices into the opposite direction. A break below the first channel line would suggest price to slowly turn to the bearish side, while a break below the 12914 would be a confirmation for a top in place, and for more weakness.
German dax, 1h
At the same time, we also need to keep an eye on E-mini S&P500 which can already be showing evidence of a temporary top so next leg down can be coming, either wave c or three.
S&P500, 1h
Disclosure: Please be informed that information we provide is NOT trading recommendation or investment advice. All of our work is for educational purposes only.
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