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 tested on rising risks

Plenty of Fed speak this week in the absence thus far of any fiscal stimulus for the US, while tech focus is on Tesla’s event tomorrow.

Dow Technical analysis, overview, strategies, and levels

Conformist buy technical overview strategies were tested last week on both the Daily and Weekly as the Dow's price ended the week close to where it started, testing longs later in the week on the retreat. Only a few of its components finished higher on Friday, including Johnson & Johnson and Merck, the losses heaviest for Boeing, Apple, and IBM. All US sectors finished in the red, with defensive real estate and utilities suffering the biggest percentage losses. US data was worse than expected for unemployment claims, building permits, housing starts, and its current account. Only preliminary UoM consumer sentiment managed to beat estimates. We've got Fed speak later today, and in fiscal stimulus there haven't been any significant updates, the attention politically on the Supreme Court.

IG client* and CoT** sentiment for Dow

There's been little change on the CoT speculator front, still holding a majority sell bias far higher than that of retail traders who are closer to the middle.

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

Volatile moves for the tech-heavy Nasdaq last week, undoing gains to break beneath its short-term support level and breaking beneath Daily 1st levels for moves towards (and in some cases) beyond 2nd levels. While the overview is stalling heavily on the Weekly, the Daily has turned more volatile with a couple short-term technical indicators turning red and a negative DMI cross. The losses on Friday in terms of share price were heavy for Incyte, Intuitive Surgical, and Qualcomm, with Tesla the outperformer ahead of tomorrow's 'Battery Day'. That aside, the FT reported over the weekend that the EU was planning to gain new powers in dealing with big tech companies which includes forcing them to break up, selling off their European operations if their market dominance threatens consumers and smaller interests, or exclude them altogether from the market.

IG client* and CoT** sentiment for Nasdaq

In sentiment, CoT speculators have surged to heavy sell.

Nasdaq chart with retail and institutional sentiment

DAX Technical analysis, overview, strategies, and levels

Little action for traders in the DAX on a lack of significant movement, staying well within its Weekly levels and offering little of a play on the Daily. The fact that it has avoided the retreat witnessed in tech stocks have meant its key indicators in the short-term Daily are a bit more positive, but overall clearly its bull trend technical overview stalling heavily and needing little to shift to a more consolidatory overview befitting recent moves. There weren't a lot of components finishing higher on Friday, with Covestro, Merck and Bayer amongst the few on top. Continental, VW, and MTU Aero Engines suffered relatively heavy losses. Rising coronavirus cases in Europe are of concern, and in economic data German PPI figures on Friday were unchanged.

IG client* and CoT** sentiment for DAX

As for sentiment, smaller price changes here can still cause big moves in sentiment, with the majority sell bias amongst retail traders dropping from 67% at the start of last week to 60%.

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 for the outer circle. Inner circle is from the previous trading day.
** CoT sentiment taken from the CFTC’s Commitment of Traders report, outer circle is latest report released on Friday with the positions as of last Tuesday, inner circle from the report prior.

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.