Cold Shower in the Merry Month of May: DAX Bulls Capitulate Below 24,000 Points!
The "Sell in May" myth has struck mercilessly, giving investors an ice-cold shower at the start of the month. The brilliant technical starting position, which was still celebrated on Thursday, has been completely pulverized within just a few hours. The German leading index had to surrender almost all of its recent gains on Monday and came crashing down below the psychologically essential bastion of 24,000 points with a painful minus of 1.24%. A toxic cocktail of an increasingly weakening Berlin government and a highly dangerous escalation spiral in the U.S.-Iran war is driving raw fear back onto the Frankfurt trading floor with full force.
Missile Shock in the Middle East and Tariff Hammer: Continental in Free Fall!
The fundamentally burdensome news material packs a punch: Alleged Iranian missile attacks on a U.S. warship right in the neuralgic Strait of Hormuz, as well as renewed attacks on the oil infrastructure of the United Arab Emirates, have sent global oil markets into sheer panic. Any easing of the situation there is currently out of the question! At the individual stock level, this geopolitical conflagration, coupled with budding trade fears, hit the Continental share the hardest. Fresh disastrous news about massive burdens on the auto industry due to looming U.S. tariffs triggered a veritable flight from the stock. With a brutal daily loss of 5.1%, the automotive supplier has definitively choked off its delicate recovery attempt and is now tumbling unchecked toward its lows of late March 2026 (just below the 60-euro mark).
Looking into the Abyss: Will the Last DAX Lifeline Hold at 23,600 Points?
To make matters worse, the U.S. stock markets also had an extremely weak start to the new trading week. Without the essential tailwind from Wall Street, another turnaround for the DAX will become a true Herculean task. Market participants must absolutely brace themselves for an uncomfortable and highly volatile Tuesday, dictated by the unpredictable rhythm of ad-hoc news. From a technical perspective, it is now imperative to pull the absolute emergency brake: Yesterday's daily low must be defended at all costs. If this succeeds, there is at least a chance that the index can seek refuge in a tough sideways movement (trading range). If this mark breaks, however, the fearful gaze of investors will inevitably turn to the last bastion: the prominent Thursday low at 23,600 points!
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