DAX Germany Daily Chart Bear Market 20% Drop

DAX, Germany, is the killer today. The S&P downgrade was just one more staw on the camel's back and it started the negativity in the broad markets. The real problems are in Europe and this is what the markets are trading on. DAX is the first major global index to go into a bear market. From a 7500 high, anything under 6000 constitutes a pull back in excess of 20%, which is the generally accepted level at which an index, stock or sector goes into a bear market. At the 5900 level now is a 21% pull back. EWG is off about 22% from its top behaving exactly in tune with the DAX as would be expected.

The worry is that to bailout Italy and Spain, France and Germany will lose their AAA ratings. This would throw Europe into turmoil, hence, Germany is feeling the pressure and this is impacting global markets. Things are getting serious. The DAX, RUT (small caps), SOX (semi's), XLF (financials) and XLI (industrials) have now fallen in excess of 20% off their tops and are all now in a bear market.  This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.