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 outperforms, DAX and Nasdaq finish higher

Retail bias shifts back to majority short in the Dow as longs get enticed into unwinding.

Dow Technical analysis, overview, strategies, and levels

The Dow managed to undo Friday's losses, with a pending home sales surge following mixed results last week in the housing sector where existing home sales was a miss while new home sales was better than expected. All US sectors finished higher, the gains largest for industrials and communication while health care and financials registered the smallest percentage increases. Amongst its components, Boeing was the outperformer with double-digit percentage gains but dropping in after hours, as the airplane maker ended its first test flight for 737, and Norwegian Air cancelled 97 planes claiming compensation. This morning's passage in parliament of China's Hong Kong national security legislation could cause more friction between it and the US, and we've got the Federal Reserve's (Fed) Chair Powell testifying later today.

IG client* and CoT sentiment for Dow

In sentiment, the bias has shifted back to majority short from a previous majority long 56%.

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

The Dow outperformed compared to the tech-heavy Nasdaq, with the gains here keeping its bull trend channel intact. Those exposed to the hospitality and travel sector remained volatile, this time around the outperformers being Marriott and Expedia, with Tesla in third crossing back above 1,000 with a leaked email from its CEO saying that 'breaking even is looking super tight'. In afterhours, Micron's share price surged following its earnings beat. Plenty of Nasdaq's components finished in the red though, the losses largest for pharmaceuticals' BioMarin and Alexion, as well as Take Two. In coronavirus news, Arizona is the latest state to roll back reopening plans, though with worsening figures stimulus hopes will rise, making comments tonight from Fed Chief Powell all the more noteworthy.

IG client* and CoT sentiment for Nasdaq

In sentiment, shorts haven't been as quick to reinitiate this time around in the Nasdaq, and as a result yesterday's gains has only taken majority short bias up to 56%.

Nasdaq chart with retail and institutional sentiment

DAX Technical analysis, overview, strategies, and levels

The DAX wasn't left out of yesterday's risk-on moves, with the gains taking its price back above the last of its main long-term moving averages, the 200-day MA. Wirecard remained the most volatile amongst its components, and given how low its share has plummeted to any small gains has translated into massive percentage changes, as a result more than doubling in yesterday's session. The insolvent payment processor's share price aside, Deutsche Bank and Covestro outperformed, the handful of stocks finishing in the red including defensive utility RWE and real estate Deutsche Wohnen. German preliminary CPI (Consumer Price Index) beat expectations yesterday and shrugged off the month before's contraction, and this morning's Chinese PMIs (Purchasing Managers Index) out of CFLP were better than expected and expansionary.

IG client* and CoT sentiment for DAX

The 2% price increase has translated into a big jump in retail short bias, rising from 51% to 59%.

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.