DAX finishes higher while Dow and Nasdaq lag
DAX’s higher finish despite worsening German data on easing expectations, while US indices could get volatile on a potential risk-on play.

DOW: Range-bound movement that could get volatile on any potential risk-off/on play
The index’s price continues to flirt with its 50-day and 100-day moving averages that are huddled close to each other, after failing to hold onto yesterday’s gains though a positive Directional Movement Index (DMI) cross did occur yesterday. However, any trade outcome (or rumors regarding it) could force a significant risk-off/on play, and hence breakout strategies would be conformist to such news. In the absence of it however, and contrarian reversals may be more ideal, even if the weekly outlook (yesterday’s report) remains relatively bullish. Retail bias is down a few percent to a majority short 62%, with any significant decline likely to shift the bias back to majority long again.

NASDAQ: Consolidatory moves befitting its current consolidatory technical overview
Both short-term (daily) and long-term (weekly) outlook remains consolidatory, with both showing positive technical bias but where intraday movement is usually range-bound. However, as with the Dow and other indices, any significant risk-on/off play on US-China trade talks and it’ll be breakout strategies that may be more ideal, but more limiting for the tech index compared to stocks whose manufacturing underlying is more exposed to the Chinese supply chain and manufacturing hub. Retail bias here is also majority short and down slightly to 66%.

DAX: Retail bias shifts back to majority short
The DAX (and European indices in general) outperformed compared to US indices, and hence the German index managed to finish slightly higher after briefly breaching its 100-day moving average. This was despite worse than expected German data, with factory orders contracting again and at a worse than expected pace. Industrial production is up next, though at this stage it’s the pushing of savings out of money markets and into riskier assets that may be helping this index in finishing higher. As for sentiment, retail bias shifted back to majority short as range-trading long that had been holding on the move towards 11800 manage to unwind some of those longs.

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