CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Dow, Nasdaq, and DAX finish higher

Range-trading rises in absence of trend move, majority short traders at risk of bullish movement.

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 1st 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.

Be sure to request IG’s Weekly & Daily Market Report when you open an account with IG Dubai and get access to the full information on the FX majors, commodities, indices, and Bitcoin.

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.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.