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.
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