And US market followed it.
Heres how and why I found it from Europe after drop was done and had even time to make that post once it was done. I knew that at least major shortcovering is coming by end of Globex session.
1.618 W5 impulse with aggressive EW divergence with SPX also where this WXY zigzag previously ended for bearish harmony & EW corrective letter with DAX.
Additionally, 5 min chart SPX dropped W2 bottom condinitions with 0.786 later during the US hours, but major work was done allready in Europe to build strong reverse situation.
Now, there are options as allways with this this theory, this hourly impulse finished can be for instance only W1 of upcoming downwave C where AB > C is switched allready for downside and it was only first one seen yet but if we are more realistic the full 4H / Daily chart suggest, once again that one full 5 wave sequence to the downside possible was finished with very many degrees or at least with 60 min EW data.
EW is orthodox movement tool, for me.
Based for entire daily chart, I am afraid so that bears might need more pause again, before this market is going new lows again. Many bearish charts actually cracked even there was bullish action done.
Love this secular bear market. However I must confess that based for DAX 4H chart sellside might need to wait their turn for a while at this time (this week for instance), but who knows how quickly these situations change, VIX does what it does now when its between 40-100. Consider as one option however, this impulse is only first one of upcoming new 5 series of C downwave where DAX is doing ABC downside correction and B wave is left behind allready. However, this is weekly chart 61.8% retracement overlap also we did so far.
About US action I do not care much, it fights to protect its bullish scenario but actual sequence is done in Europe where market goes if it leads to any new price territory, then US usually follows it – rest of the time US is more sideways market with given range allready even its large.
Particulary any new lows are done and given in Europe / Globex, not in US.
