Background of the Market Rally
- Panic Monday: The crash on April 7, 2025, was triggered by the announcement of new US tariffs by US President Donald Trump. This led to global panic sales and one of the largest global market crashes since the Corona stock market crash of 2020.
- Recovery and Record Levels: The DAX astonishingly recovered from this low point and hit the 24,000-point mark for the first time on May 20, 2025. This is the 26th record high this year and reflects the ongoing strength of the German stock market.
Current Market Situation
- Stabilization: After exceeding the 24,000-point mark, the DAX has stabilized mid-week. This shows a positive market development that is significant for private investors and savers.
- Technical Analysis: The DAX is technically in overbought territory, which indicates a possible pullback. However, it is expected that the index may continue its upward movement after a consolidation.
Outlook
- Future Developments: The DAX could target the range around 24,500/600 points in the current impulse movement before consolidating. A pullback below 24,000 points could lead to declines down to 23,900 or lower.
- Economic Factors: The European Central Bank (ECB) will publish its semi-annual financial stability report, which will address the consequences of the tariff policy and the weakening economy in the euro area. These factors could influence future market developments.
Overall, the DAX shows remarkable resilience and strength, which is encouraging for investors and savers. However, future development will depend on various economic and geopolitical factors.