Blue rectangles- lower highs

Black lines- Fibonacci retracements

Red line- neckline support (broken)

Green lines- expected move

Near the end of August we warned that September would be a difficult month for DAX bulls. In September DAX managed to bounce towards 13,970 but failed to keep the short-term bullish trend. Instead price formed a lower high and this week we see DAX break below key lows. Dax is breaking below both August and March lows. This is a very important bearish sign. Our view remains bearish on DAX. Our target remains around the 61.8% retracement or around 11,300 price level. Key short-term resistance is found at 13,563 and as long as we are below this level, we remain bearish.