Fresh record highs for Dow and Nasdaq, DAX surges
US indices post fresh record highs buoyed by energy, short positions continue to get squeezed.
Dow Technical analysis, overview, strategies, and levels
Another day, another fresh high for indices, and where in the case of the Dow a fresh record high breaching its infamous mid-term resistance level and putting the squeeze on short traders. In terms of sectors, the outperforms were energy by a clear margin with both Chevron and Exxon outperforming, while defensive stocks were on the defensive as both utilities and real estate were in the red. While further gains can’t be ruled out, the catalyst for these gains means they’ll easily be at risk of an eventual reversal, testing short traders in the process.
| Current Technical Overview | Bull Trend |
| Technical Overview Conformist Strategies | Buy 1st Support After Reversal, Buy 1st Resistance Upon Breakout From Below |
| Technical Overview Contrarian Strategies | Sell 1st Resistance At/Before Price, Sell 1st Support Upon Breakout From Above |
| S/L for 2nd Resistance | 27902 |
| 2nd Resistance | 27811 |
| S/L for 1st Resistance | 27719 |
| 1st Resistance | 27628 |
| Relative Starting Point | 27445 |
| 1st Support | 27262 |
| S/L for 1st Support | 27171 |
| 2nd Support | 27079 |
| S/L for 2nd Support | 26988 |
IG client and CoT sentiment for Dow
In sentiment, yesterday’s retail trader extreme short bias has dropped but remains in heavy short territories, opposite institutional bias standing at an extreme long 83%.
Dow chart with retail and institutional sentiment
Nasdaq Technical analysis, overview, strategies, and levels
A pop higher in this index's price to post a fresh record high in what has been a common theme for the tech index, and ensuring in keeping the bulk of its main technical indicators bullish and its Average Directional Index (ADX) showing a propensity to trend.
| Current Technical Overview | Bull Trend |
| Technical Overview Conformist Strategies | Buy 1st Support After Reversal, Buy 1st Resistance Upon Breakout From Below |
| Technical Overview Contrarian Strategies | Sell 1st Resistance At/Before Price, Sell 1st Support Upon Breakout From Above |
| S/L for 2nd Resistance | 8413 |
| 2nd Resistance | 8378 |
| S/L for 1st Resistance | 8344 |
| 1st Resistance | 8309 |
| Relative Starting Point | 8240 |
| 1st Support | 8170 |
| S/L for 1st Support | 8136 |
| 2nd Support | 8101 |
| S/L for 2nd Support | 8066 |
IG client and CoT sentiment for Nasdaq
However, for IG's client sentiment figures and as with the Dow, extreme short bias amongst retail traders has dropped but remains in heavy short levels.
Nasdaq chart with retail and institutional sentiment
Dax Technical analysis, overview, strategies, and levels
It already reached the upper end of its weekly resistance level – and breached it – in a sign of a flurry of activity for the German DAX that is pushing the index to fresh highs and keeping its bull trend technical overview intact. However, as we pointed out yesterday, both daily and weekly movement remains relatively rangebound, and hence intraday strategies for limited profit-taking have been more ideal, even if in favor of its current bull trend technical overview. While the overview is a bull trend, it could easily stall again as has been the case on the weekly.
| Current Technical Overview | Bull Trend - Stalling |
| Technical Overview Conformist Strategies | Buy 1st Support After Reversal, Buy 1st Resistance Upon Breakout From Below |
| Technical Overview Contrarian Strategies | Sell 1st Resistance At/Before Price, Sell 1st Support Upon Breakout From Above |
| S/L for 2nd Resistance | 13403 |
| 2nd Resistance | 13355 |
| S/L for 1st Resistance | 13307 |
| 1st Resistance | 13260 |
| Relative Starting Point | 13164 |
| 1st Support | 13069 |
| S/L for 1st Support | 13021 |
| 2nd Support | 12974 |
| S/L for 2nd Support | 12926 |
DAX chart with retail and institutional sentiment
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