The Dax 40 slides over the prospect of a 75 basis point hike from the ECB. A combination of a break below the critical support at 12450 and a bearish MA cross on the daily chart indicates that sentiment has shifted back to the downside, making the bear market official. Sellers may see any rebound as an opportunity to stake in. The demand-turned-supply area around 12500 could keep the buying in check. 11800 might be a temporary support and its breach would trigger a new round of sell-off to October 2020’s low at 11400.
