Elliott wave Analysis: DAX, The S&P500 and XXX/JPY Pairs Having a Great Connection; A Bullish Reversal in View

Stocks are lower, still in search of support. We see German Dax reaching a very interesting area around 11800 where bears may slow down as second zigzag seems very similar in a distance of the first zigzag. Ideally, there will be a strong bounce from that area, but it should be in impulsive fashion to confirm this reversal. A break and rise above 12k would be important evidence for more upside in the upcoming days.

German DAX, 30Min

E-mini S&P500 can also be completing a complex decline from May 1st, here around 2800. We are waiting on an impulse; a small five wave rally to confirm a turning point.

S&P500, 1h

If stocks would rise then we should watch for XXX/JPY pairs very closely, especially if USDJPY will put in a low here at 109.00.

USDJPY, 1h

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

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