After the break below 6990 the DAX sold off hard. Between 6300 and 6550 is very good support. Two gaps are still open which could be closed before a much bigger sell-off. Resistance on the way up is definitely 6990. Above that level the chances are pretty good to retest 7400. On the other hand below 6200 there is no bigger support level until 5800. With that high volatility we are talking about much bigger moves. I think it is a little bit scary that the DAX dropped nearly as much in three days as it gained between October 2010 and February 2011.
Nevertheless I think that the lows from today should hold for a few days at least. One reason is if you are counting the downward move from the highs of the year to the low in June as wave A, the bounce back up to 7523 as wave B and the decline since than as wave C, then wave C reached its 1.618 extension. Furthermore the S&P 500 touched its 38.2% retracement from last year's low to this year's high and formed a bullish hammer on high volume today.
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