German DAX Poised to Fall Even Further
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German DAX– Heavily one-sided retail trader positions warn that the German DAX may continue onto fresh lows through near-term trading. Our data shows that ‘the crowd’ has remained net-long the GER30, which tracks the benchmark German equities index, since it traded sharply lower at the beginning of the year. And indeed, current long positions outnumber those short by 2.5 to 1.
Severe declines make near-term corrections higher increasingly likely, but our bias calls for selling into DAX declines until we see a sharp turn in retail trader sentiment.
See next currency section: S&P - S&P 500 Remains in Trouble until this Changes
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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