Are All Dams Breaking in the DAX Now? Blood-Red Quadruple Witching Shocks the Trading Floor
A deep-red week culminated in a true sell-off this past Friday. Anyone who had hoped the major expiration day—the notorious Quadruple Witching—could banish the downward specter and provide stabilization was bitterly disappointed. With a massive drop of 3.38%, the DAX closed the session, leaving stunned faces on the Frankfurt trading floor. Is sheer panic now setting in among investors? The danger is absolutely real: if all dams completely break now, the shares of the 40 DAX companies will literally be dumped onto the market without limits. The fatal problem with such emotional overreactions is the massive supply surplus. When the buyer side dries up and demand can no longer absorb this gigantic selling pressure, the downward spiral accelerates dramatically.
Billions Wiped Out: SAP and Deutsche Bank in Freefall
Just how brutally this sell-off is raging becomes clear when looking at the most prominent losers. Right in the thick of the red is the indispensable DAX heavyweight SAP. Over the past three months, the software giant has seen a terrifying 26.9%—more than a quarter of its total market value—vanish into thin air. Hot on its heels is Deutsche Bank, which, as the second-biggest loser of the past quarter, also forfeited a quarter of its market capitalization with a drop of 25.3%. When such fundamental driving forces capitulate, they ruthlessly drag the entire index down into the abyss with them.
Outlook: Technical Trading and the Magnetic Pull of 21,480 Points
For the newly dawned trading week, we must prepare for a heavily technically driven market. The massive fundamental shocks and the restrictive interest rate decisions by global central banks are priced in for now. The market must first digest this bitter pill. But the momentum points mercilessly downward. For this Monday, we must initially assume that the journey south is not yet over. The next significant technical target and the first real support wait down at 21,480 points. Here, an open upward gap from April 23, 2025, still gapes. Should the index target this level, the old, ironclad stock market wisdom would once again be confirmed: eventually, every price gap gets closed.
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