I have been watching the DAX H&S form for a while now. This pattern has now been confirmed with a break and weekly close below the neckline.
A descending neckline indicates fundamental weakness and could imply a swift drop.
I am short with a first target in the 10,700 area, and my ultimate target under 10,000.
Main bearish outlook--
Another break of the long term rising trendline is bearish
Shallow rebound from 12610 low on June 19 has ended- setting up re-test and likely break of 12600
Next key support could be 12400
12600 level holds, maintaining trading range enrivonment
(level is significant because it was resistance after the February sell-off...
German Dax is calling for a correction on monthly/weekly time-frames. Also with the upcoming french and german elections this year, I am expecting weakness/corrections in german dax for the coming weeks.