Friday, 17 August 2012

DAX testing trend line drawn from 2011 and 2012 highs

With Europe the focus of the financial world's attention, and the German DAX the bellwether stock index for Europe, keep an eye on this. Interesting to note that the DAX is testing its key level now, the S&P 500 is less than 1% from its key level, while the ASX 200 is lagging at 1.5% below its key level of 4400.

S&P 500 likely now headed for test of 2012 high

The S&P 500 last night rallied though the top of the wedgey upward correction I have been tracking (black lines). Only an immediate false break flagged by a move below 1400 might indicate a turn lower instead of that test (ie. back inside the wedge and the channel marked with purple lines). Last night's 15 min chart Elliott Wave count was invalidated, while the daily chart count calling for a move below the June lows is still possible so long as the late April high holds. Chart includes all sessions trade.