DAX

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GENERAL OVERVEIW OF DAX MARKET

ISSUE DATE: MAY 5, 2006

A top at HEC will represent the end of the bull market rally that started back in 2002. HEC is the boundary line between this cycle and any continuation of the bull phase. Our analysis strongly indicates a top at HEC but if there is a permanent break up and over HEC then we can expect a continuation of the bull market for at least 3 months.

If HEC is the upside price limit and major top does form here, then price will not return to these levels for a long time. The initial target is back down at C lines well below the market. Such a downward move will be supported by IC1 & IC2 and these lines may force a narrow trading range between them and HEC for a while.