The most important event of this week is coming! FOMC in 4 days! If there will be rise of the rates in USA it doesn’t mean that markets will automatically fall. Historically falls came after normalization of monetary policy, what can still take few years. However the shock can be high and in there can be high volatility in the markets. I believe the most probably scenario will be test of last year’s bottom.
On DAX weekly chart we can mark 5-wave up pattern, which is now corrected. The bottom from August 24th is on 38,2% of all uptrend, however for now it is difficult to find signals of correction end and the price can go to minimum of October last year. On the daily interval index moves between support at 10000 pts and resistance at 10550 pts. DAX30 is the most undervalued of all German indices.
Better situation is on other German Indices. TECDAX tested support from February 2015 and in the last 3 weeks worked out 17% of the down movement. The smallest company index SDAX fell a little more than 15%, but after that gained 12%. Index of average companies MDAX fell a little more, but in less than a week it came back to range from first half of the year.
