Dow, Nasdaq, and DAX lower as of this morning as risk-off still permeates
Despite managing to avoid significant losses following yesterday’s gap lower, risk-off attitude fails to subside just yet.

DOW: Gapping lower but holding its ground in a mostly range-bound session
The gap lower shouldn’t have come as a surprise given the risk-off event that occurred over the weekend, whereby most of the index’s components finished in the red, and where energy shares like Chevron and ExxonMobil outperformed on the rise in oil prices. Its technical overview remains bullish (despite fundamental uncertainties) and its price resting near its mid-term resistance level and not that far off from record highs posted months earlier. Retail traders aren’t complaining however on the retracement, with heavy short bias dropping 3% on fresh short profit-taking and far more needed for shorts initiated at lower price levels to get out of loss. In trade news, US and Japan have reached an initial trade agreement, while US-China deputy level talks are set for Thursday.

NASDAQ: Nearly closing its gap but starting the morning in the red
The Nasdaq’s ability to lift itself off the lows was certainly positive, though failed to close the gap and is slightly in the red as of this morning. The index’s bull trend line is still holding as most of its technical indicators remain neutral but positive technical bias is still intact as its price remains above all its main long-term moving averages. Retail traders here also took slight profit, and in the process its heavy short bias is down 1% to 65%.

DAX: Bull trend only slightly dented following yesterday’s risk-off play
Oil is less of a factor for the DAX due to the absence of oil companies, but it is a significant one for auto companies reliant on lower fuel prices to aid car sales (and especially SUVs that form a bigger chunk of profit margins). As with equities in general, it was a gap lower that mostly held, with the brief intraday drop offering retail shorts stuck to take profit and reducing heavy short retail bias by 3% to 73% on fresh averaged-in shorts taking profit. The index’s price remains close to its mid-term resistance level, and any buying at this stage that runs contrary to German data would be on the back of QE easing set to restart that would push more money into riskier assets.

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