DAX finishes higher, Dow and Nasdaq up this morning

Dow Technical analysis, overview, strategies, and levels

The Dow was in for an intraday move higher but retraced back down by the end of the session, keeping its bull trend technical overview intact but stalling at the highs ahead of big items in store for today, not just in terms of data with preliminary GDP (Gross Domestic Product) for Q1, but also the Federal Reserve's (Fed) decision thereafter, even if it may be more about continuity of the current programs in place. Merck was at the bottom of the Dow's components suffering the biggest contraction despite better than expected earnings, and today it'll be Microsoft and Boeing’s turn (which according to reports is working on issuing bonds to raise funds). In terms of performance the energy sector enjoyed the biggest percentage gains, while health care, communication, and tech showed the largest contractions.

IG client^* and CoT sentiment for Dow

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

Unlike the Dow, the Nasdaq's price failed to reach its upper pivot point, staying within its main ranges and underperforming with a weaker finish. In earnings, Alphabet's (Google) share price surged after hours after its quarterly revenue beat analysts' estimate, while AMD share prices dropped more than 4% after it lowered its full-year sales forecasts. We've got more earnings in store today, with Microsoft, Facebook, Tesla, and eBay.

IG client^* and CoT sentiment for Nasdaq

In terms of sentiment, retail traders were beneficiaries of the recent move, with fresh averaged-in shorts swift to close out and take majority short bias down from 61% to 56%, still opposite that of larger speculative traders (according to last week's CoT report) holding a slight majority long 54% bias.

Nasdaq chart with retail and institutional sentiment

DAX Technical analysis, overview, strategies, and levels

Unlike US indices, the German DAX was in for a higher finish, even if it failed to offer any pivot point action. Most of its components finished in the green by the end of the session including Deutsche Bank and auto companies, with only a handful in the red where the losses were greatest for Wirecard suffering a 26% drop in its share price after its comments regarding KPMG's special investigation into the digital payments firm.

IG client^* and CoT sentiment for DAX

The price moves higher are making it difficult for shorts to close out, with retail bias slightly down on yesterday's 67% heavy short bias, and where nearly all those shorts have been initiated below the current market price.

DAX chart with retail and institutional sentiment

*The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 8am.

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