Trade talk powers Dow and Nasdaq to fresh record highs, DAX dips
Optimistic ‘final throes’ talk on a US-China trade deal aids both Dow and Nasdaq, DAX remains relatively range-bound but offers short traders a small chance to take profit.
Dow Technical analysis, overview, strategies, and levels
Fresh record intraday highs yesterday for the Dow met with a fresh record close, and where US data later in the day was mixed as consumer sentiment and manufacturing dipped while housing and trade surprised to the upside. But it was optimism regarding a trade deal that has yet to be put on paper that aided risk sentiment and enticing investors into more risk-taking. In terms of sector performance, energy underperformed, and while most sectors were in the green it was real estate and consumer stocks edging higher ahead of the shopping season. More significant data awaits later today, and where expectations are for preliminary GDP (Gross Domestic Product) to grow for Q3 by 1.9%, and durables to contract but by less than previous.
IG client and CoT sentiment for Dow
Majority short retail bias has inched back up again after briefly dropping yesterday, suggesting potentially that any longs initiated are for limited profit-taking and not anticipating further upside momentum.
Dow chart with retail and institutional sentiment
Nasdaq Technical analysis, overview, strategies, and levels
The tech sector outperformed on Monday, and as for Tuesday the sector was relatively mixed, but giving the Nasdaq a slight finish higher as the tech index's price posted another record and doing little to change its current bull trend technical overview that continues to offer relatively limited intraday movement.
IG client and CoT sentiment for Nasdaq
Retail traders continue to hold the opposite end of this bull trend, and heavy short bias has turned to extreme short levels at 78% as the few longs that remain get ever enticed into taking profit.
Nasdaq chart with retail and institutional sentiment
DAX Technical analysis, overview, strategies, and levels
As far as Germany's sentiment figures go, the fact that both IFO and GfK weren't worse than expectations but matched them instead was positive to say the least. However, the net result for its price following an intraday high was a slight lower finish, and where auto shares were near the bottom as the sector globally looks set to get tested further. While all its main technical indicators continue to flash green, there’s no denying its bull trend technical overview continues to get tested near its short-term resistance level.
IG client and CoT sentiment for DAX
Any retracement even if brief has been aiding retail traders holding an extreme short bias of 78% yesterday, with that bias dropping 3% to a heavy short 75% as of today morning.
DAX chart with retail and institutional sentiment
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
