Elliott Wave View: DAX Approaches Record Highs While The Broader Uptrend Stays Firm

The DAX remains firmly positioned within a bullish Elliott Wave structure and is now approaching a potential breakout into new all-time highs. We interpret the advance from the October 8 low as an impulsive sequence, which supports the view that the broader trend continues to favor the upside. This structure suggests that buyers remain in control and that the market may extend its gains before a more meaningful correction develops.

From the October 8 low, wave (i) advanced to 25,693.90 before a corrective pullback in wave (ii) ended at 25,013.54. The index then resumed its advance and rallied strongly in wave (iii), reaching 26,106.19. A subsequent consolidation in wave (iv) found support at 25,677.86. From that level, the final leg higher in wave (v) extended to 26,692.90, completing wave ((i)) at the higher degree.

Following the completion of wave ((i)), the DAX entered a corrective phase in wave ((ii)). The pullback concluded at 25,617.54 and held well above the October low, preserving the broader bullish structure. From that low, the index resumed its advance in wave ((iii)), indicating that the next higher-degree rally is already underway.

In the near term, the bullish outlook remains intact while the pivot at 24,793.30 continues to hold. Any pullback should attract buyers in a 3-swing or 7-swing corrective structure. Such corrections are expected to provide support for the next leg higher rather than signal a trend reversal.

Looking ahead, the completion of waves ((iii)), ((iv)), and ((v)) will likely finalize wave 1 of (3) at a higher degree. Once that structure ends, the index should enter a larger corrective pullback in wave 2. However, that decline is expected to remain corrective and hold above the October 8 low. After the correction concludes, the DAX should resume its broader uptrend and continue advancing toward even higher levels.