Dow may be correcting, but let's look at FTSE and DAX first...

It is less than 2 weeks before the great US election, I believe Dow Jones has begun to react pending election result. For the first time after 6 weeks, the bar this week turns red, and it is LOOONG. It closed at 40,092, slightly below its 8-week moving average of 40,119. 

Is it early sign of reversal? 

I will probably leave it for next week's up-date.

MEan while, it has been a while since I give an update on the 2 European indices: FTSE for UK and DAX for Germany.

My last up-date on these 2 counters was Re-visiting DAX and FTSE dated July 23rd 2023. Gosh! has it been THAT long?

SAt the time, I anticipated a correction for DAX to its 55-week moving average before continuation upward. While I did not place an objective for DAX due to its pending correction, its projection measurement for DAX were all upward. 

I also noted strong resistances for FTSE even though it will trend higher with an estimate objective of 7,961. 

So what happened to these 2 counters since then?

Fig 1. DAX weekly chart

DAX's correction went beyond the 55-week moving average. It was stopped only by 144-week moving average before it continued its climb, which met with another correction, this time supported by its 55-week moving average.

These corrections create opportunity for projection measurement. It has past its first 100% projection at 19,236 but stopped by another 61.8% projection. I suspect that this is a minor congestion with support at its 100% projection of 19,236, as well as its 8-week moving average. The next resistance level is its 127% projection at 20,523.

It is also close to reaching the 100% resistance level of its major projection at 20,078. crossing this will allow it to head for its 127% projection level of 22,272. 

There is some concern though, while climbing higher, its bars are short and over lapping. this is a sign of weakness for me. With 3 lines of resistance very close to each other right ahead, I suspect it may be on another round of correction before heading higher.

Why am I still bullish on DAX?

I am not seeing divergence yet, especially on MACD. With this new peak, and MACD is much lower than before, I believe that this is the first diverging sign.

Fig 2. FTSE weekly chart

FTSE went further than my expected objective reaching a high of 8,478 before it begins to correcting, at one point falling to a low of 7,913, which was supported by its 55-week moving average. 

While the formation of a hammer candlestick giving indication of reversal of its correction, it is resisted by its Bollinger envelop. I believe its correction is not over and may re-visit its 55-week moving average before heading higher, if that is the eventual direction.

So far, all the projection measurements maintin a continuation upward,with its closest resistance between 8,556 to 8,694. Crossing this level, it will meet a tougher resistance at 8.903.

However, before going higher, it must first go lower with support between 8,029 to 8,073.

So far there is yet sign of divergence on MACD, so I believe that any downward trend is still a correction and not yet reversal.