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 partially recover following trade deal scare

Preliminary PMIs released today out of the US and Eurozone.

Dow Technical analysis, overview, strategies, and levels

The Dow wasn't immune to the trade talk this morning following White House Navarro's comments that suggested the US-China deal was over before clarifying it pertained to trust. The index finished the session higher yesterday to easily fill the weekend gap, and Nike was the outperformer yesterday amongst its components ahead of its earnings release later this week. Health stocks such as Walgreens and Merck who had previously outperformed late last week underperformed, and in the end as sectors it was health and financials that contracted slightly while tech and utilities were in the green and outperforming. In US data, existing home sales plummeted to lows unseen in nearly a decade, and new home sales will be released later today preceded by preliminary manufacturing and services PMIs (Purchasing Managers Index) out of Markit. Ongoing coronavirus attention as well as any US fiscal stimulus talk are other items to be on the lookout for.

IG client* and CoT sentiment for Dow

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

The tech sector outperforming meant that the tech-heavy Nasdaq was in for a fresh record close, and amongst its components Synopsys and PayPal finished on top with the latter planning to start direct crypto sales. In the bottom were health and pharmaceutical stocks that had outperformed on Friday, reversing to finish much lower by the end of the session. Here too, trade talk confusion this morning sent the Nasdaq's price lower before recovering. Overall, far more will be needed to undo its current bull trend technical overview as its price approaches the upper end of its bull trend channel.

IG client* and CoT sentiment for Nasdaq

In sentiment, given the price gains here are larger than that of the Dow and the recovery more swift, shorts initiated at lower price levels haven't been able to close out just yet, with any further price gains enticing longs into unwinding. Retail bias started the week at a heavy short 68%, and has since risen to 71% as of this morning.

Nasdaq chart with retail and institutional sentiment

DAX Technical analysis, overview, strategies, and levels

Although its price recovered later on to cross and close above the last of its main moving averages (the 200-day MA), by the close RWE and Continental were amongst the few outperformers, and where once again Wirecard was in the bottom suffering another big percentage loss as the financial services provider's share price experiences significant volatility. We'll be getting German preliminary manufacturing and services PMIs later today out of Markit, with expectations for an improvement on the previous readings but ongoing contraction in both sectors with sub-50 readings.

IG client* and CoT sentiment for DAX

In sentiment, range-trading continues, and the finish higher has taken retail short bias to 59% as its price approaches a very short-term resistance level.

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
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

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.