Brutal Crash Below 25,000 Points: DAX in the Chokehold of the Iran Escalation!
The German leading index is experiencing a veritable bloodbath! On Wednesday, panicky fear struck the Frankfurt trading floor with full force, dragging the DAX into a massive, uncontrolled sell-off. With a brutal minus of 1.3%, the index plunged to 24,795.94 points, mercilessly pulverizing the psychologically crucial 25,000-point mark downwards. The toxic trigger: The eagerly awaited peace agreement in the Middle East is suddenly fading into the distant future once again! Shocking signals are emerging from Tehran that absolutely no bilateral talks are currently taking place with the U.S. The fatal consequence did not take long to materialize: The price of oil immediately shot up unstoppably once more, laying like a heavy lead weight on the already sputtering economy!
Next Shock from the U.S.: Will Hard-Hitting Punitive Tariffs Destroy the DAX Dream?
As if the geopolitical situation weren't disastrous enough, the next crushing bombshell is now looming! New, hard-hitting tariff threats from the U.S. are putting European investors into a state of absolute shock. Massive punitive tariffs of up to 12.5% are suddenly on the table—officially justified by allegedly insufficient controls regarding suspected forced labor. This explosive mix of a geopolitical ice age in the Middle East and a looming transatlantic trade war is immediately nipping any bullish fantasies in the bud. The DAX is getting entangled ever deeper in a grueling correction. In this highly toxic market environment, a new all-time high is absolutely out of the question right now!
Corpus Christi Horror: Is the Index Now Plunging Unchecked to 24,500 Points?
For today, Thursday, absolutely everything is at stake from a charting perspective, but the start promises pure danger! Since large parts of Germany are observing the Corpus Christi holiday, an extremely thinned-out trading volume threatens in the morning. This dreaded "Corpus Christi effect" opens the door to highly erratic and unpredictable price swings before the concentrated U.S. capital power pushes into the market in the afternoon! Meanwhile, all technical warning lights are flashing blood-red: Yesterday's weak closing price points to a massively continued selling momentum. Should the DAX now continue to fall into a bottomless pit, the next saving support awaits deep down at 24,500 points. The ultimate survival mission for the bulls is crystal clear: The 25,000-point sound barrier must be reconquered as quickly as possible, otherwise new highs will disappear into the dark abyss for a long time!
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