Be ready for a decline in the DAX. A small rise to 6500 is possible, but it will be followed by a quick decline afterwards. The target is 5500.

Elliott wave forecast

The German DAX is in a big Ending Diagonal, which started in February of this year. Ending diagonals are messy, but give high risk to reward trading opportunities. The ensuing leg down will be fast and devastating once the ending diagonal is finished.

Another long term bear market is not expected. The current forecast (1ooo points decline) is a correction in the longer term market prediction. The low of March 2009 is not expected to be broken again.

DAX Chart