The DAX Crash

September 10th, 2011
in contributors

crash by Doug Short

Yesterday's economic news from Europe was grim, as illustrated by this Reuters article featured at CNBC. The DAX was particularly hard hit, down 4.04% today and 31.06% from its interim high on May 2nd.

Here is a closer look at the DAX since 2007. I've highlighted the all-time high and three remarkable DAX cliff dives since that peak. The start and end points for the declines are arbitrary — they are the boundaries of the steep declines.

Follow up:

doug-2011-9-10-DAX-declinesClick for a larger image

Here is a chart of the S&P 500 with the same three time frames highlighted.

doug-2011-9-10-SPX-declines

Click for a larger image

As we can see, the middle decline, which coincided with the most dramatic period of the Great Financial Crisis, bears the closest resemblance to the DAX equivalent. The current DAX cliff dive has not been mirrored by the S&P 500, which dropped sharply for the first nine sessions and then moved sideways in choppy volatility. Obviously the current focus of global financial stress is Europe. And Germany is suffering a market implosion of striking proportions.

Related Articles

Investing Blog articles by Doug Short

About the Author


Doug Short is the founder of dshort.com, now more than five years old, which specializes in detailed graphical analysis of markets and economic factors. He has a Ph.D. from Duke, has been a full professor at North Carolina State University and has held positions with IBM and GlaxoSmithKline . Stay in touch:
Email:
dougshort@econintersect.com

 









Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.

















 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved