According to the strategy team led by David Qiu, the trading behavior of US investors is shifting to closing long positions and opening new short positions. Risk exposure for S&P 500 and Nasdaq futures is gradually returning to neutral levels. The team wrote in the research report: “The Russell 2000 Index is still a clear exception; its long exposure is still close to a three-year high. If the bearish momentum continues, the risk of a profit settlement will be high.” Despite a slight weakening in market sentiment, the average position level in the European market is the highest among developed markets. “The German DAX Index faces a major tactical risk: profitable long positions coexist with deep loss short positions, creating an asymmetric pattern of capital flows.”

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