Elliott Wave View: $DAX Extending Higher

Short Term Elliott Wave view on DAX suggests the pullback to 12886.55 ended wave (4). Index has resumed higher in wave (5) and the internal subdivides into a 5 waves impulse Elliott Wave structure. Up from wave (4) low, wave 1 of (5) ended at 13425.85. The internal subdivision of wave 1 is unfolding as an impulse in lesser degree. Wave 2 pullback ended at 12947.83 low as a double three Elliott Wave correction. The Index has extended higher in wave 3 as a nesting impulse. A nesting impulse is a 5 waves structure where the wave 3 shows a clear 5 waves extension.

Up from 12947.83, wave ((i)) of 3 remains in progress. Expect another leg higher to complete wave ((i)) of 3, then the Index should pullback in wave ((ii)) of 3 to correct the cycle from January 6, 2020 low before the rally resumes. We don’t like selling the Index and expect dips to find support in 3, 7, or 11 swing for further upside extension as far as pivot at 12947.83 low stays intact. The Index should see a few more highs before ending wave 5 of (5). Afterwards, it should complete the cycle from August 15, 2019 low and pullback in larger degree 3 , 7, 11 swing to correct that cycle before the rally resumes.