Decoding the DAX: Analyzing Market Cycles for a Forecast of the Next Correction and Recovery

The DAX, Germany’s leading stock index, has been on a steady upward trend for the past few months. However, many investors are wondering when the rally will come to an end and when the next correction will occur. In this blog post, we will analyze the market cycles of the DAX to try and answer these questions.

To begin, we will be using two cycles to analyze the DAX: the Kitchen-Cycle (41 months) and the Two-Year Cycle. While past performance does not guarantee future results, these cycles have been able to explain the market movements of the DAX fairly well in the past. It’s important to note that these cycles are not perfect and there are many other factors that can impact the performance of the DAX.

Based on our analysis of the market cycles, we expect the current rally to end soon. But we expect a recovery to occur starting from the beginning of June, which may last until the end of August. Furthermore, the current cycles suggest that a significant rally will not occur until the beginning of 2024.

However, it’s essential to keep in mind that the analysis is based on the currently active cycles, which can change over time. As we look further into the future, the accuracy of our predictions decreases. Therefore, it’s important to conduct your analysis and consider a wide range of information and opinions before making any investment decisions.






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