Dow, Nasdaq, and DAX finish the session higher as financial earnings impress
Health care and financials outperform as start of US earnings season propels Dow to a 3-week high
DOW: Health care and financial sectors outperform, takes the Dow to 3-week highs
Earnings yesterday from financial heavyweights showed JPMorgan outperforming compared to Goldman and Citi, though overall the net result was a higher finish for the index on the back of health care and financials, and in line with its current volatile underlying that’s promoting conformist breakout strategies over contrarian reversals. That continues to test majority short bias amongst retail traders, with that bias rising 5% to a heavy short 72% as longs get enticed into closing out and shorts hold on. In trade news, it remains more to the pessimistic side on whether the US-China ‘phase 1’ trade deal will pan out.
NASDAQ: Back near its mid-term resistance level as risk appetite improves
With earnings in financials not expected to influence this tech index directly, overall investor risk appetite did improve given a better than expected earnings season start, and as a result its price has moved ever closer to its mid-term resistance level (and record highs reached last summer), as long-term and short-term positive technical bias remains in place. As with the Dow, retail shorts are also getting tested here, with the bias up to a heavy short 76% as long positions dwindle further.
DAX: Strong bullish finish even if its tested slightly this morning
Will it or won't it has been the question for the German index, as whether its bullish technicals can overcome fundamental worsening data to breach its mid-term resistance level. It managed to do so briefly yesterday in a bullish move befitting its current bull trend technical overview, though being able to breach it successfully and clear it will take a whole lot more. Range-trading shorts are stuck from lower price levels, with the bias rising a notch to a heavy short 77% and not that far off extreme short bias levels.
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