The DAX 30 gapped up on positive news out of the US but gave up all its gains and is now down 2%. On positive thing I want to mention, the DAX nearly closed the old gap at 6960 and had a high volume sell off. So all in all I think a temporary bottom could be in place. The S&P 500 retested its 200 day moving average and bounced off it and the VIX never went positive during this sell-off. So the market felt some panic but stabilized.
Nevertheless the DAX should close above 7050 but at least above 7000 today. A close below would be bearish in my view.
After such a sell-off it is quite hard to define targets to the upside but there is still the gap at 7389 which could be closed before a steeper correction.
Quick add: in the very short term another test of today's lows could happen but they should hold as support.
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