The Dax rose 2500 points and today it is 250 days from the low.In Gann terminology price has caught up with (or squared) time.We are also 360 calendar days from the low which was 3600 on the nearest future chart.So we have a square of the range and a square of the low today.This alerts us to act on any reversal signal that might develop.
The first chart shows a possible head and shoulders top,the right shoulder of which may also be a small head and shoulder pattern.This may be an overly bearish view but if we think the market is at least due a correction it is worth bearing in mind the more bearish possibility the chart suggests and let the market tell us when the correction (if it materialises) has run its course rather than decide here.
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