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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Dow and Nasdaq finish higher while DAX recovers off the lows

Equities mixed globally as slight risk-on atmosphere aids US indices, retail bias moves to heavier short territories.

DAX Source: Bloomberg

DOW: Risk-on appetite aids equities to a higher finish

It was only one day of decline on Tuesday before the index managed to recover back closer to its mid-term resistance level and hurt retail traders who are holding heavy short bias, taking it a couple notches higher to a heavy short 72%. It spells better news for institutional traders who are holding extreme long bias of 88%, having upped it last week by 2% on bigger long positioning. From a technical overview standpoint, it’s a stalling bull trend that has offered more buy on reversal opportunities than breakouts on limited momentum. Outperformers included Nike following its earnings, and Home Depot on better than expected housing data.

DOW Source: IG charts
DOW Source: IG charts

NASDAQ: Retail bias up 8% to a heavy short 66% as range-trading shorts await retracement

It's a mix in term of its technical overview, with its price below all its main short-term moving averages (MA) but above all its main long-term ones, having crossed back above its 50-day MA after briefly touching its 100-day MA earlier in the session. And as with the Dow, retail bias is back up in heavier short territories, in this case by 8% to a heavy short 66% as range-trading shorts await retracement and longs quick to take profit. Tesla and Netflix were in pain on Tuesday and lead in terms of lagging, whereas yesterday the latter outperformed and the former finished higher.

NASDAQ Source: IG charts
NASDAQ Source: IG charts

DAX: Bull trend continues to stall heavily at the highs, on verge of technical overview shift

A dent in the index's bull trend technical overview, as it continues to stall at the highs but offering buy reversal opportunities (even as its weekly still looks bullish). Its price almost broke below its 100-day, and retail traders were in for a treat taking profit in this index before reinitiating shorts as it retraced back up. German data remains bearish overall as its economy teeters on the brink of recession, with only easing expectations from the European Central Bank (ECB) prevent risky assets from dropping further. As for data, GfK’s reading was postponed until today, though expectations aren’t high given the overall context of the economy.

DAX Source: IG charts
DAX Source: IG charts

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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