Wednesday was very weak day for German bulls. DAX opened on Wednesday 230 pips below Tuesday’s close and that was another great session for scalpers, but bad for investors trying to catch bigger moves.
Bulls doesn’t have much hope, only Thursday’s ECB meeting can change the sentiment. Will Mario Draghi act like Super Mario and stop the wave of decreases?
We can point at least three reasons of Wednesday’s decreases in the Europe. Of course one of them was depreciation in China, the other are EURUSD gain in the morning and decrease of S&P500 futures. In the result European stocks were in red zone from first minutes and they stayed over there till the end of session. French CAC40 -3.45%, English FTSE100 -3.46%, DAX -2.82%. 29 out of 30 DAX companies lost some value, 5 of them more than 5%: RWE -6.32%, Deutsche Bank -6.04%, Commerzbank -5.49%, E.ON -5.20%, Volkswagen -5.00%.
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Technically situation on DAX dynamically worsened. There is huge volume on bearish candles and break of September 2015 bottom. For Elliott Waves enthusiasts it is clear that DAX is right now in bearish wave C with range to 8,400 pts (I pointed that possibility many times). This level is showed by equal length A=C. The closest supports: 9,100 pts, 8,900 pts, 8,300 pts.
