Dow, Nasdaq and DAX finish slightly higher but tested this morning

Lack of fresh trade news combined with insignificant data keep indices relatively range-bound.

Dow Technical analysis, overview, strategies, and levels

Another day, another fresh record high for the Dow, and in this case keeping its bull trend technical overview intact where all its main technical indicators are flashing green. In terms of sector performance overall, consumer staples and real estate outperformed while energy was in the red, though given its been gain after gain those in the red didn't suffer heavily. In earnings, Home Depot will be releasing its figures with Lowes tomorrow, and there will be US housing data released both today and on Thursday.

IG client and CoT sentiment for Dow

The moves thus far haven't been in favor of retail traders, whose extreme short bias rose a notch to 82%, as nearly all of those shorts have been initiated at lower price levels, and hence are in desperate need of retracement back down to unwind those short positions in profit.

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

As with the Dow, the Nasdaq too enjoyed fresh record highs, and in terms of performance both gained by 0.21% for the session, and where the tech sector finished slightly higher. Nvidia outperformed for the session, which posted fresh highs but also intraday lows. In all, nearly all its technical indicators are flashing green, with its ADX (Average Directional Index) showing an ongoing propensity to trend. However, limited intraday gains have meant buy breakout strategies haven’t panned out just yet, with liquidity lower above market price.

IG client and CoT sentiment for Nasdaq

Retail bias remains extreme short though has dropped a notch to 80%, and where as is the case with Dow and DAX the bulk of those shorts have been initiated at lower price levels.

Nasdaq chart with retail and institutional sentiment

DAX Technical analysis, overview, strategies, and levels

Compared to US indices that have been posting fresh record highs, the German DAX’s bull trend technical overview has been stalling heavily at current levels, and where auto shares within the index were mostly at the bottom in terms of yesterday’s performers. Out of Asia, it has been a slightly higher session this morning after yesterday’s move by the People's Bank of China to reduce its 7-day repo rate.

IG client and CoT sentiment for DAX

However, a lack of fresh highs has meant that retail traders have been averaging-in out of their positions, and extreme short bias has been slowly dropping as a result, standing at a heavy short 76% as of today morning.

DAX chart with retail and institutional sentiment

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