Dow and Nasdaq finish higher, DAX nears its short-term resistance
Negation of delisting rumors and positive Apple CEO comments aid the tech sector in finishing higher.

DOW: Dismissal of rumors regarding delisting and outperforming Apple aids the index in finishing higher
White House trade advisor Navarro dismissing recent unconfirmed reports regarding US plans to delist Chinese companies and Apple and Microsoft outperforming helped take the index higher, even as energy lagged – no surprise given falling energy prices – as did financials. Today’s data is important from a manufacturing standpoint, as the Institute for Supply Management's (ISM) Purchasing Managers' Index (PMI) estimate this evening will shine light on the overall manufacturing sector in the US following last month's shocking contraction that effectively put global manufacturing in a recession. The technical overview remains bullish but intraday has offered more consolidatory movement that is lacking momentum, and hence breakouts (to the buy or sell side) may be more ideal once we witness a significant move and volatility returns. Retail bias is heavy short at 71% as range-trading continues to occur in indices with shorts initiating and longs taking profit.

NASDAQ: Finishing higher as Apple outperforms while Alphabet (Google) and Amazon lag
Apple outperforming following upbeat comments from its CEO Tim Cook regarding iPhone sales certainly aided the index, though both Alphabet (Google) and Amazon lagged. The net result is that its price is back above its 50-day moving average (MA) and enticing retail longs into taking profit and range-trading shorts to enter. The net result in terms of retail bias is a majority short 62% and nowhere near heavy short levels experienced in the Dow which has been outperforming and trapping shorts. As with the Dow, breakout strategies may be more ideal once volatility hits, with intraday movement testing trend traders significantly.

DAX: Worsening German data means more European Central Bank (ECB) easing
German data yesterday showed preliminary Consumer Price Index (CPI) figures disappoint while its unemployment rate remained unchanged, and with retail expanding slightly following last month's contraction. Up next are final manufacturing PMI figures for the manufacturing powerhouse, whereby its effect will be more heavily felt on German shares and likely to affect overall business sentiment more greatly. However, despite whatever bad news may come its way, ECB easing expectations will rise as a result, and aid the bond market and riskier assets like those in the DAX in the process. Its price is currently back above the last of its main short-term moving averages and near its short-term resistance level, and squeezing retail shorts further whose heavy short bias is up 4% since yesterday morning and now close to extreme short levels.

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