Whilst the S&P 500 has hit the 3000 milestone hitting all time highs over the past couple days the Dax has been dropping and has now fallen below the key support level at 12,431.13. The performance of the Dax is heavily reliant on the global economy as a number of companies in the Dax index are major exporters. Therefore the ongoing trade tensions between the US and China and the threat of US tariff on the EU alongside the weakening German economy and BASF issuing a profit warning has impacted investor confidence putting pressure on the index. We are therefore short the Dax in particular as a pullback in global equities, which could occur if the FED disappoints and doesn't cut rates as aggressively as the market is expecting, will be especially felt index. We will be monitoring the situation in the coming days with a view towards starting to take profit at the key Fibonacci support level at 12,021.70.