Market's DAX index oscillating between potential recovery and impending readjustment

The German stock market, as represented by the DAX, has experienced a significant downturn at the start of September, with the index plummeting by over 500 points. This move out of the weeks-long consolidation phase is a clear bearish signal for investors.

The DAX currently stands at 23,594 points, having attempted a cautious recovery on Wednesday, which closed with a 0.5% gain. However, several resistance levels loom large, potentially hindering further growth. These include the 100-day line at 23,693, a horizontal line at 23,700, Wednesday's high at 23,705, and the 61.8% retracement level at 23,818.

Moreover, the DAX faces significant hurdles at higher levels. Tuesday's high of 23,990, the September 1st gap level of 24,037, the September 1st high of 24,046, the August 29th high of 24,063, and the SMA50 (daily) at 24,088 all present formidable barriers.

If the DAX breaks below the level of 23,475, further correction with additional losses is likely. Support levels for the index can be found at 23,507, 23,500, 23,482, and 23,475.

The reasons for this market downturn are multifaceted. Rising interest rates, particularly in the US where the 30-year Treasury yields are approaching the 5% mark, are increasing pressure on already highly valued stock markets. The rise in French government bond yields is particularly concerning for investors, adding to the uncertainty in the bond market. This uncertainty continues to weigh on prices and could lead to further correction.

In times of market volatility, investors often turn to safe-haven assets like gold and silver, which are surging in response to the current market conditions. However, the search results do not provide specific information about which shareholder group is concerned about a further correction of the DAX or about any similar situations in recent years.

As the situation evolves, investors will be closely watching the DAX to gauge the direction of the market and make informed decisions. It is crucial to stay informed and adapt strategies accordingly in these challenging market conditions.

Market's DAX index oscillating between potential recovery and impending readjustment