Dow, Nasdaq and DAX in another higher finish
DAX retail bias shifts to majority short, short bias rises in Dow and Nasdaq as fresh longs unwind.
Dow Technical analysis, overview, strategies, and levels
The Dow made a move beyond yesterday’s 1st resistance before partially retracing to end the day slightly higher and keep its bull trend technical overview intact, even if it has been stalling at these levels where from a technical standpoint its DMI (Directional Movement Index) is still positive and combined with a trending ADX (Average Directional Index). Amongst its components, Pfizer and UnitedHealth outperformed, with Boeing in the bottom and both Disney (which dropped further in after hours following its earnings tumble) and McDonald’s not that far off. All US sectors finished in the green save for financials, with health care and tech the outperformers. In US data, ISM's non-manufacturing PMI was better than expected even if contracting, and up next we get ADP's non-farm estimate today, unemployment claims tomorrow, and the market-moving Non-Farm Payrolls the day after.
IG client* and CoT sentiment for Dow
Dow chart with retail and institutional sentiment
Nasdaq Technical analysis, overview, strategies, and levels
As with the Dow, prices here made a move beyond yesterday’s 1st resistance before partially retracing, though with tech and health outperforming the Nasdaq finished with a higher percentage gain to take its price back above all its main short-term moving averages. Amongst its components, Regeneron Pharmaceuticals outperformed with its earnings above estimates, and Activision also beat estimates, its share price surging in after hours. At the bottom was Alexion Pharmaceuticals (dropping more than 5% after news it would acquire Portola Pharmaceuticals), Expedia, and Liberty Global.
IG client* and CoT sentiment for Nasdaq
In sentiment, with both the Dow and Nasdaq finishing higher, majority short retail bias has risen since yesterday morning. The price gains here being larger, and hence retail bias is back up in heavy short territory at 64% as of this morning.
Nasdaq chart with retail and institutional sentiment
DAX Technical analysis, overview, strategies, and levels
Despite the German constitutional court ruling which in the absence of a proper ECB (European Central Bank) response that justifies the necessity and proportionality of its bond-purchasing program would force the Bundesbank into halting participation and the sale of its bond assets, the movement in the German DAX was relatively consolidatory. It failed to reach either of yesterday's key pivot points, as its bull trend technical overview continues to stall heavily at these levels needing little to shift its technical overview. Amongst its components, MTU Aero Engines was the volatile one again outperforming this time around, and the few components in the red included Belesdorf (which reported lower sales due to the coronavirus) and Wirecard.
IG client* and CoT sentiment for DAX
In sentiment, retail bias is back in slight majority short territory, shifting from a previous slight majority long 53%.
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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