Dow, Nasdaq, and DAX finish in the green despite fundamental worries
Fed’s Powell speech tomorrow and today’s preliminary PMI figures the next item in focus for indices.

DOW: Technical overview shift even as fundamental catalysts remain unresolved
With the bulk of its technical indicators back to neutral and a non-trending ADX, a technical overview shift was long overdue tilting it back to a more consolidatory outlook with its price briefly crossing its 100-day moving average. The catalyst(s) for the recent price drop that occurred earlier in the month however remains unresolved, with trade tariffs, a Fed that may not ease further (depending at this stage on the tone of Powell’s speech tomorrow), and rising geopolitical risks. As for retail bias, it has increased 9% to a heavy short 68% as range-trading longs take profit and leaving shorts averaging in at the short-term resistance level.

NASDAQ: A green finish despite fundamental worries
Although fundamental worries haven’t subsided just yet, equities have managed to retrace off the lows and post a green finish yesterday, with the Nasdaq certainly no exception to that rule. However, as with the Dow, the catalyst for those fundamental moves earlier in the month remain unresolved. From a technical standpoint, it’s looking more bullish for this index with most of its technical indicators now positive and combined with a trending ADX, though any fundamental news will make breakouts and reversal strategies more in tune with price action than fading strategies that’ll be prone to stop outs. Like the Dow, retail bias has risen further into majority short territory, and here it’s up 2%.

DAX: At risk of a technical overview shift ahead of German preliminary PMI figures
The index’s bear trend line has been broken, all its main technical indicators are back to neutral, and its price crossed and finished above its 200-day moving average. On the fundamental front, Germany’s 30-year bond auction was in negative territory, meaning as long as companies can yield decent enough dividends it’ll be an attractive proposition in a world where the hunt for yield is getting ever tougher. In the process of yesterday’s price gains that have gone against the stalling and weakened bull trend technical overview, retail bias has shifted from a majority long 55% to a majority short 59%.

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