DAX Germany Daily Chart on Verge of Bear Market

The DAX slipped into a bear market on Friday, down in excess of -20% from the April top, but managed to recover by a hair to close out the week. The DAX peaked at 12391 on 4/10/15 so a -20% bear market begins at 9913. Comically, the market makers squeezed it back above this threshold to close at 9916 and avert the bear market by a hair. The DAX slipped into a bear market in August but recovered and today is back in the soup.

The -10% correction occurred at 11152 the thin pink line. Note how price came down and bounced trying to avoid the correction territory with all its might, only to fail in June. That battle continued and then the bears won in early August when the DAX fell into correction territory and the waterfall crash began. The expansion, or megaphone, pattern is in play with price at the lower trend line so a near term bounce may be in order.

The DAX began the year at 9806 only about 100 handles lower so if this level is breached, Germany will be negative on the year. All the pundits parading across television and computer screens this year professing to buy Europe especially Germany are wrong. If you followed their advice you have less money. ECB President Draghi needs a bigger money bazooka so he can send the euro lower and European stocks higher. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 9:15 AM EST on Tuesday morning, 9/22/15: The DAX is collapsing -3.3% down to 9620 obviously in the -20% bear market phase and the DAX is down -1.9% for the year.