German DAX - Potential large scale top could be in place

The German DAX has reached the cluster resistance near 13,500 and a potential large scale top could be in place. If this is the case, then we soon should see a break below minor support at 13,194 and more importantly below 12,913 that will be a strong indication of a top being in place.

A large five wave rally can now be counted from the March 2009 low of 3,589 and a smaller five wave rally can be counted from the February 2016 low of 8,695, so the risk/reward ratio no longer favor being long the German DAX.

Consider taking money off the table or at least tighten up your stops.