European Indices Trade Mixed

The German DAX traded strongly higher today, finally breaking out above the prior June and July highs and cooperating with expectations that wave 3 of iii is underway. There remains room for more near-term upside to reach the ideal fib target at 16090 before wave 3 of iii completes and price begins the next consolidation phase as wave 4 of iii. A break below 15800 would now be the first warning sign of morphing into something more immediately bearish.

$DAX-XET - Micro - Aug-12 2001 PM (1 hour)

The Euro STOXX 50 continued to climb higher today, still cooperating with expectations that wave 3 of iii is filling out. There remains room for more near-term upside to reach the ideal target fib at 4270, before the next corrective consolidation as wave 4 of iii is seen. Therefore, as long as price is above 4185, further upside is expected.

$SX5E-STX - Micro - Aug-12 1959 PM (1 hour)

The UK's FTSE 100 curled down slightly today, but potentially as just a micro 4th wave in wave C of iii. If so, then 7180 - 7165 is micro support that should hold in order to turn price back up in wave (5) of C to reach the 7265 fib target above. Otherwise, below 7165 opens the door to the higher degree wave iv already underway and 7120 as the next support level to watch.

$UKX-FTSE - Micro - Aug-12 1957 PM (1 hour)
$UKX-FTSE - Micro - Aug-12 1957 PM (1 hour)
Garrett Patten is a senior analyst at ElliottWaveTrader covering both U.S. and international equity indices as well as stocks.