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 plummet this morning

Retail bias remains majority long in Dow, Nasdaq, and DAX, CoT long bias drops.

Dow Technical analysis, overview, strategies, and levels

Equities were in for a volatile week, and that volatility has continued into today morning with a plummet for indices across the board. On Friday, most of its components were in the red, JPMorgan at the bottom with ExxonMobil not that far off. Its few outperformers included pharmaceutical company Walgreens, 3M second-best as demand for face masks and sanitizers soar, and Disney. US sector performance showed energy hit hardest on Friday as oil prices dropped over 10%, but all were in the red with health care stocks least hurt.

IG client* and CoT sentiment for Dow

In sentiment, retail bias is on the verge of shifting back to majority short, and the latest from the CoT (Commitment of Traders) report shows long bias dropping 8% to 70% on a reduction in long positions by 5,797 lots and an increase in shorts by 200.

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

With investors fleeing towards safe haven assets like bonds and equities in relative retreat, the gains made in the Nasdaq earlier in the week were heavily tested, and eventually undone as of this morning's moves lower. Amongst its components on Friday, Gilead Sciences share prices soared on company news its experimental coronavirus treatment may get approval, though is at risk of a serious reversal should that not be the case. Dollar Tree and pharmaceuticals were also outperforming on Friday.

IG client* and CoT sentiment for Nasdaq

In sentiment, retail bias here is also on the verge of shifting, standing at a slight majority long 52%. CoT bias has dropped but remains in majority long territory with Nasdaq consolidated long positions dropping by 1,035 lots and short positions rising by 439 lots.

Nasdaq chart with retail and institutional sentiment

DAX Technical analysis, overview, strategies, and levels

Unlike US indices finishing the week slightly in the green, it was a red finish for the German DAX, and a further move lower as of this morning with its price offering below last week’s Weekly 1st Support as well as above its 1st Resistance for limited take profit. On Friday, only Continental’s shares were in the green with the rest of its components in the red, though this time around Lufthansa wasn’t hit as hard. In data, German factory orders were better than expected on Friday, and we’ve got trade and production data that could be tested given the weekend trade figures out of China.

IG client* and CoT sentiment for DAX

Retail bias here has risen further into heavy long territory, up 6% since the start of last week to 71%.

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.

Discover how to trade the markets

Learn how indices work – and discover the wide range of markets you can trade on – with IG Academy's free ’introducing the financial markets’ course.

Put learning into action

Try out what you’ve learned in this index strategy article risk-free in your demo account.

Ready to trade indices?

Put the lessons in this article to use in a live account – upgrading is quick and easy.

  • Get fixed spreads from 1 point on FTSE 100 and Germany 40
  • Protect your capital with risk management tools
  • Trade more 24-hour markets than any other provider

Inspired to trade?

Put your new knowledge into practice. Log in to your account now.

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.