DAX analysis

The DAX hold once again the very critical support area between 5750 and 5800. Nevertheless higher volume and bad intraday action in the last few hours could be a bad omen. Furthermore the S&P 500 broke below its support at 1226 (50 day moving average) and below the trendline I have shown in the last post.
The RSI of the DAX chart broke its uptrend on October 31st and a few trading days later the DAX itself broke its uptrend. Now the DAX successfully retested the broken trendline and should head lower. Moreover a shoulder-head-shoulder pattern could be formed on the daily chart if the DAX breaks below 5750.
A gap down tomorrow below 5750 and all bets are off. Then I would not expect any action like we saw on November 10th. If we close tomorrow below 5750 we would also have a bearish engulfing pattern on the weekly DAX chart.

The alternative scenario would be a daily close above 6125. Then we could see some kind of year-end-rally.