Dax loses more than 500 points: market technology signals further losses

Düsseldorf Price losses on the German stock market continued into today’s trading day. In the evening, the Dax closed 4.2 percent at 11,560 points. For the first time since mid-May, the index slipped below 12,000 points. The daily low is at 11,457, over 600 points below yesterday’s closing price.

The first two trading days of the week were already a disaster for the Frankfurt Stock Exchange. The main index lost 3.7% on Monday, yesterday Tuesday it was another 0.9% with a final reading of 12,063 points.

According to the technical analysis, there is no end to the price loss. The new target is 11,000 meters, only prices above 12,200 points would change the situation.

At prices below 11,000 points, more precisely 10,768 points, the main German index would return to the bear market. It is currently still a fix. The minus of the crown height, which is 13,460 meters, is about 14 percent. According to market technology, losses of more than ten percent are considered a correction, a drop of more than 20 percent as a bear market.

In addition to discussions on a “blockade light”, which should however take the economy into account, the US elections on November 3 represent the main burden on equity markets.

Many investors don’t care about the US election result, the stock exchanges can live with Joe Biden and Donald Trump as the winner. There is more fear than a long discussion about the election result. US authorities are already preparing for the worst-case scenario: violent riots on election day and beyond.

There is already a project on the stock markets for the scenario of an uncertain election outcome. That was the 2000 election. At that time, it took about five weeks after the November 7 vote before the winner was determined.