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German DAX is coming lower much more aggressively than initially thought, but despite this sharp sell-off in the last few sessions, it can still be part of a complex corrective pattern, meaning its a longer pause from the 2025 highs. The decline fits a potential W-X-Y structure in a higher-degree black wave four on the updated wave count, and if that’s correct then the index is now approaching a very important support around 23k, which matches the June swing low.
Looking at the daily and weekly charts, this can still be a normal fourth-wave retracement, but we cannot call the correction complete unless we see an impulsive rebound back toward 24k.
Big picture:
DAX is unfolding an extended bullish impulse; it's incomplete but the big cycle shows that there can be black wave IV retracement within higher degree red wave V. Ideally we will get a pullback in 2025.
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