Dow and Nasdaq retrace slightly off the highs while DAX finishes in the green

All three technical overviews a bull trend but US indices reliant on optimism on the trade war front and for the DAX ongoing central bank easing.

Dow Technical analysis, overview, strategies, and levels

The energy sector may have outperformed earlier in the week, but yesterday it was at the bottom with the outperforming sectors being health care and financials. Its bull trend has stalled at the highs once again, as it has been a continuous case of limited intraday (and many times intraweek) gains making buy breakout strategies difficult for short-term profit-taking.

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 27860
2nd Resistance 27772
S/L for 1st Resistance 27683
1st Resistance 27595
Relative Starting Point 27419
1st Support 27242
S/L for 1st Support 27154
2nd Support 27065
S/L for 2nd Support 26977

IG client and CoT sentiment for Dow

Retail bias remains at extreme short levels and unchanged at 78%, nearly opposite extreme long levels of 83%.

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

While Tesla may have outperformed yesterday, there were plenty of other components in the red, and giving the tech index a slightly lower finish for the session not far off from record highs posted earlier in the week.

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 8369
2nd Resistance 8336
S/L for 1st Resistance 8303
1st Resistance 8270
Relative Starting Point 8203
1st Support 8136
S/L for 1st Support 8103
2nd Support 8070
S/L for 2nd Support 8037

IG client and CoT sentiment for Nasdaq

That brief intraday dip however did give a chance for fresh shorts to exit and taking heavy short bias down 2% to 76%, but the bulk of those shorts have been initiated at lower price levels and far more retracement will be needed, and meaning that they’ll still be prone to a squeeze should price make a move back up.

Nasdaq chart with retail and institutional sentiment

Dax Technical analysis, overview, strategies, and levels

Unlike US indices registering small declines yesterday, a finish higher and a brief intraday high as well for the German index, and with German data set for release early today. Thus far, all its main technical indicators continue to flash green despite uncertainty for the manufacturing powerhouse and for the bloc in general. But bad news for the German economy doesn’t always translate into bad news for equities, as worsening data means prolonged ECB (European Central Bank) easing, and hence forcing more money into riskier assets.

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 13395
2nd Resistance 13348
S/L for 1st Resistance 13301
1st Resistance 1354
Relative Starting Point 13160
1st Support 13066
S/L for 1st Support 13019
2nd Support 12972
S/L for 2nd Support 12925

IG client and CoT sentiment for DAX

DAX chart with retail and institutional sentiment

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