DAX

The German Dax index has gone past the 61.8% retracement of the entire decline from the February top. Doing so it may be fair to switch wave counts from A-B-C, to 1-2-3 which sets us up for a protracted advance. We have only completed minor wave iii of 3, and so further upside remains open towards the top end of the rising channel near 13,400 or where 3 = 1 = 13,864. The RSI at 74 has entered overbought territory but can stretch some more or develop a negative divergence before the move is complete.