DAX - Europe goes nuts
DAX - Europe has been nuts, going up for 5 days like a rocket to give it all back in a day. In the process the Dax made a lower top but not the FTSE. The best answer I could come up with is this. Remember that I was looking for a vth wave down on the Dax last week that did not happen. So that fall ended in 3 waves, and now this one sided rally is 5 waves. What this is, is an expanded flat in wave 2. This explains the corrective fall and impulsive rise that did not make a new high and is now seeing a 3rd wave decline start. So unlike what most think, today's fall is the start of wave 3 down for stocks that will go on for weeks to come. Bounces will be temporary. A wave 3 decline would break the FEB low for the index. Some of the European indices have already broken the FEB lows today.