Here we go even the DAX made the weekly 12 today (this week) which gives my 'top' assumption for markets in general a very strong backing. The 13 will come very easy now as initially after the weekend had no big events we might see a small rebound but clearly the 7200 target defined by the consolidation pattern has been reached and the market is ready for a dive now. The dive may go down in 2 scenarios in the first we make an overall 25 % correction within the next 2-3 months. The second is we only make a 10-15 correction a rally from that level once again to new highs before taking an even bigger dive thereafter with a 50 % magnitude as later this year the EU is poised for its biggest crises yet. We have to follow that as we get there but for now get rid of longs and enter shorts for the DAX.
Friday, January 28, 2011
DAX update
Here we go even the DAX made the weekly 12 today (this week) which gives my 'top' assumption for markets in general a very strong backing. The 13 will come very easy now as initially after the weekend had no big events we might see a small rebound but clearly the 7200 target defined by the consolidation pattern has been reached and the market is ready for a dive now. The dive may go down in 2 scenarios in the first we make an overall 25 % correction within the next 2-3 months. The second is we only make a 10-15 correction a rally from that level once again to new highs before taking an even bigger dive thereafter with a 50 % magnitude as later this year the EU is poised for its biggest crises yet. We have to follow that as we get there but for now get rid of longs and enter shorts for the DAX.
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