Dax             has returned to within the broad topping pattern seen over 2017-18. While this is not ideal action, the fact that the market broke down in the first place and is held in check by our moving average still provides a bearish posture.

Our first target (yellow horizontal line) has been negated for now. Taking out last week’s high on a closing basis will alleviate bearish momentum, whilst a clear continuation pattern would be to close below last week’s low.

Since our bias is short, we will await confirmation next week before initiating new short positions. Any surprise in the US elections may stun markets and initiate a fresh drawdown in global equity prices.