DAX craters to almost four-year lows


German stocks are cratering again on Thursday, and the index is down 5% during the EU session, trading at around 9,840 EUR, which are levels last seen in the summer of 2016. 

Earlier today, Donald Trump officially closed the United States and banned any travel from the EU to the US (excluding cargo). This step created another leg lower in the markets. 

It's impossible to define any supports and resistances when volatility is at its extremes. However, it looks like that as long as the index stays below 10,300 - 10,400 EUR, the short, medium, and long-term outlooks all seem bearish, pointing to further declines. Any rallies should be sold into as the index is now in a bearish trend. 

The same applies for supports - if you look at the long-term daily chart, the next demand zone could be in the 9,500 - 9,275 EUR region, where the price stopped its decline in the summer of 2016 and marched higher.

We must say that this volatility happens once a decade, and these are awful times. Later in the day, the ECB is expected to deliver some big news, but if the central bank disappoints, the decline could steepen sharply.

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