Woe is the DAX

The China doom spreads across the globe, DAX massively dropped. However we currently see  the re-test of a bearish channel and the decline was stopped above the support area around 10 050 level (at least for some time).  If we will see another bullish trend is another issue. Lufthansa is the biggest loser today (~-3.0%) after Goldman Sachs recommended "sell".

Source: BloombergMore than 15% of DAX companies profits comes from China mainly because of the car manufacturers such as BMW, Daimler or Volkswagen. DAX is losing over 8% in August and 17% from the top seen in April. Our technical analysis: here.The start in Europe was poor, however DAX rebounded from almost -2% loss and was in a positive territory after surprisingly good PMI reading in Germany. However it might be too soon to go long as the EUR is appreciating, especially against the USD.