Dow, Nasdaq and DAX all finish higher
Retail short bias rises to heavy sell territory in Dow and Nasdaq.
Dow Technical analysis, overview, strategies, and levels
The Dow finished the session higher yesterday with Walgreens outperforming followed by Apple and Microsoft, and in the red was Boeing at the bottom with financials' JPMorgan Chase (following its earnings miss) and energy giants' Chevron and ExxonMobil (after oil prices cratered) not that far off. Elsewhere, Johnson & Johnson earnings beat estimates, taking its share price higher in after hours, and up next we get a string of financial companies including Bank of America, Goldman Sachs, Citigroup, and Morgan Stanley. There will also be UnitedHealth Group. Most sectors have been gaining with only energy in the red and tech the outperformer.
IG client* and CoT sentiment for Dow
In sentiment, retail short bias has risen to 72% and is at risk of a big move higher that could put the squeeze on majority short traders.
Dow chart with retail and institutional sentiment
Nasdaq Technical analysis, overview, strategies, and levels
With the tech sector outperforming, the Nasdaq was in for a green finish as its price crossed past both its 50 and 100-day moving averages breaching yesterday's 1st Resistance level. Amongst its components, Tesla was on top gaining 9%, with Fastenal gaining 7% after its earnings release yesterday. Amazon was a key mover, its share price rising to fresh record highs as the online retailer enjoys a clear advantage in the current coronavirus storm, and software stocks generally in higher demand. As for airlines, the Treasury Department yesterday said that the majors (and some minors) confirmed in principle to the $25b package.
IG client* and CoT sentiment for Nasdaq
When it comes to trader bias, the latest moves haven't been in favor of heavy short retail traders who have upped their bias to 70%, close to the short bias in the Dow.
Nasdaq chart with retail and institutional sentiment
DAX Technical analysis, overview, strategies, and levels
It was only a slight green finish higher for the German DAX yesterday, failing to offer a play for contrarian or conformist traders on a lack of pivot point play, but aiding its current technical overview. Amongst its components, Wirecard led the gains, but there were a few components in the red including MTU Aero Engines at the very bottom, and airliner Lufthansa. The mood in mainland Europe has improved slightly as car companies are set to reopen plants.
IG client* and CoT sentiment for DAX
The lack of movement in its price yesterday resulted in no change in retail bias, opting to remain in heavy short territory at 66%.
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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