German DAX made a five-wave recovery into a wave A/1, up from 8165 low where a bigger wave IV) consolidation had ended. This recovery is first evidence that the trend can be turning to bullish on the stock market.
Looking at the daily chart we see a temporary top for A/1 at the 11259 level, also where former wave B swing low in August of 2019 proved to be good resistance. As we know, after a five-wave rise or decline develops (an impulse), a temporary, three-wave pullback may start forming, a contra-trend reaction. We labeled a B/2 underway, with possible support at 10140 level, or lower at the 9340 level where Fib. of 61.8 sits. Bear in mind that we still have an unfilled gap at 9844, so price can still cover it, before further recovery.
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