Dow, Nasdaq, and DAX finish higher

Dow Technical analysis, overview, strategies, and levels

A higher finish for the Dow but failed to reach either of its key pivot points yesterday, barely keeping its bull trend technical overview intact that has been repeatedly tested over the past couple of weeks. Amongst its components, Intel outperformed ahead of its earnings today, and while nearly all were in the green there were a couple in the red that once again included Boeing. All US sectors finished up, the gains strongest in tech and weakest for consumer staples. More airlines will be releasing their earnings today and tomorrow, and in terms of the Dow’s components Verizon is tomorrow.

IG client^* and CoT sentiment for Dow

The relatively rangebound movement as of late has been enticing more traders into range-trading these levels, with the slight move up pushing majority short bias back up, now at 63%.

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

With the tech sector outperforming, Nasdaq outperformed compared to the Dow, taking its price back above its 100-day moving average and keeping plenty of its key technical indicators flashing green. However, intraday momentum has still been relatively limiting, as it reached yesterday's 1^st Resistance level but didn't offer much beyond it, finishing the session higher but failing to give conformist breakout strategies a clean break. Amongst its components, only a handful were in the red which included Netflix, and in terms of earnings we get Intel today and American Airlines tomorrow (though with Southwest and United today it could be influenced more heavily on expectations).

IG client^* and CoT sentiment for Nasdaq

In sentiment, retail bias is majority short and rising here as well, up to 62% as fresh longs get enticed into closing out, while some daring shorts run opposite hoping for rangebound movement.

Nasdaq chart with retail and institutional sentiment

DAX Technical analysis, overview, strategies, and levels

The price movement for the DAX has thus far been far too rangebound for trend (or even pivot point) traders to make a play, with its price failing to get anywhere near its key levels. Even news that the ECB (European Central Bank) would accept junk bonds as collateral from banks didn't aid the German index much. Amongst its components, airliner Lufthansa was among the few suffering losses, but plenty were gaining with those gains biggest for Infineon. With an EU summit today on a possible fiscal response, preliminary manufacturing and services PMI (Purchasing Managers Index) for both the Eurozone and its manufacturing powerhouse Germany, as well as GfK's consumer sentiment means traders will have quite a bit to digest in terms of fundamental factors.

IG client^* and CoT sentiment for DAX

So far it's been heavy on the range-trading front, the slight gain pushing majority short bias up to 59%.

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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