Little movement in Dow and Nasdaq with US bank holiday, DAX edges higher
Risk-related concerns persist while Germany’s contraction in manufacturing fails to dent the DAX.

DOW: A consolidatory technical outlook ready to shift on risk-related news
While the technical overview is consolidatory whereby a significant portion of its indicators are neutral and with a non-trending ADX, as of late indices have been taking their cue from risk-related moves that have been chained to a trade war that shows no signs of abating, as well as US data like tonight’s ISM figure. The slight downside movement yesterday offered fresh shorts to take profit, and as a result retail bias has dropped 6% but is still heavy short at 64%.

NASDAQ: Short profit-taking as price edges slightly lower
With a US bank holiday, expectations weren’t for significant movement to begin with, and hence the movement was in line with its consolidatory technical outlook that’s showing a touch of negative technical bias. That’s not to say the fundamental outlook is bright, as any further trade risks or worsening US data might entice breakout over reversal strategies. All three indices on this report currently have majority short bias amongst retail traders at 64%, and its down a couple percent for this index on slight short profit-taking.

DAX: Edging higher despite contracting manufacturing PMI figure
German manufacturing yesterday contracted at a worse than expected pace dropping slightly to 43.5, but the index managed to lift itself slightly higher and tilting more technical indicators in the process. Recessionary fears for the manufacturing powerhouse haven’t subsided to say the least, though ECB expectations continue to be the main driver keeping riskier assets off the lows. Its bear trend was undone on the oscillations at the low and the recent rise, and the euro is dropping as of this morning.

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