Friday, April 24, 2009
Left hand the DAX ( German stocks) reaching its wave A highs as it will eventually mark a double 13 (Combo and SEQ) at the former high around 4700. We can expect a sharp pullback from there towards the Gap/lap area 4400 generating a head and shoulder bottom probably before heading higher in wave C up. As Germany is heading for big elections this year we can expect juicy perks for the voters and promises as Germany is run by a Grand Coalition ( imagine Reps and Dems forming a government and your close to the picture). This overall confirms that the global wave A comes to an end as we had a resilient week starting off weak but about to close relatively strong - I do prefer it the other way round starting out strong to close weaker which was not the case. The VIX is in week 7 entering week 8 next week with multiply daily 13's in place. we will have some challenging Astro events over the weekend and early next week which might trigger a turnaround for wave B down.
Posted by getagrip at 10:24 AM