DAX craters 10% in worst decline since Brexit referendum

The combination of the coronavirus and Saudi oil war has sent stocks sharply lower, with EU benchmarks losing 8-10% and US equity futures were halted.

The primary resistance for the DAX now seems to be at around 11,250 - 11,500, and while the index remains below it, the short-term outlook seems bearish. However, due to the bullish pin bar on the two-hour chart, we might have seen a short-term bottom for now, and the index might try to erase some of the enormous losses.

However, all will depend on how Wall Street will react, and considering the US futures are still halted, and we might see further selling pressure later in the day.

If DAX drops below today's lows of 10,500 EUR, another selling wave could hit the markets, with the next immediate target at the psychological level of 10,000 EUR. The index is down almost 8% at the time of writing so that losses might be limited today, but the selling can continue tomorrow.

It's important to note that another crisis has already started, thus buying the dip doesn't seem like a relevant strategy anymore, at least until the virus situation improves.

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