Stock market plunge continues

DE30 drops below 14,900 pts and nears recent low

Sell-off on the global stock markets continues. Asian equities followed their US peers and booked big declines today, with Nikkei (JAP225) dropping 2.5%. Situation does not look any better in Europe, where the majority of blue chip indices from the western part of the Old Continent trade 1.5-2% lower. Accelerating inflation and lack of action from central bankers are the main drivers of sell-off.

DE30 dropped below 14,900 pts handle and is approaching recent lows at 14,830 pts. Key support zone to watch can be found in the 14,800 pts area, where the lower limit of the Overbalance structure as well as the 65-session moving average can be found.