Fresh record high for Nasdaq, Dow and DAX drop
Retail bias little changed amongst the three, opting to remain in majority short territory.
Dow Technical analysis, overview, strategies, and levels
Initial buy-on-reversal off of yesterday's 1st Support offered plenty, but the Dow was in for an eventual move lower that favored contrarian sell breakout strategies instead for a move down towards its previous 2nd Support level. Amongst its components, the handful in the green were once again tech giants' Microsoft and Apple taking in big gains, while worst hit was Boeing (again, with airline stocks also tumbling), and energy companies' ExxonMobil and Chevron also suffering significant percentage drops. As a sector, only tech finished higher, and amongst the rest energy and financials took the biggest hit. A dovish Federal Reserve (Fed) and US coronavirus cases passing two million is no doubt negative headlines, though in a Senate hearing the Treasury Secretary didn't rule out the possibility of more fiscal stimulus.
IG client* and CoT sentiment for the Dow
Meanwhile, the retracement has given a chance for some retail shorts to close out, taking majority short bias down to 60%.
Dow chart with retail and institutional sentiment
Nasdaq Technical analysis, overview, strategies, and levels
Another day, another fresh record high for the Nasdaq, and contrasting the performance in the Dow and S&P500 which both contracted. Twice buy breakout opportunities occurred on a breach of yesterday's 1st Resistance, but in the end a partial retracement was in order that favored contrarian fade strategies as its bull trend technical overview stalls (not in the sense of not offering fresh record highs, but on a lack of intraday momentum and limiting intraday opportunities). Amongst its components, Tesla outperformed taking its price above 1,000 with a memo from its CEO regarding its freight truck, while in the bottom the underperformers included Marriott and Starbucks after the company said it lost as much as $3.2bn in revenue during its fiscal third quarter.
IG client* and CoT sentiment for Nasdaq
In sentiment, retail bias is stuck in heavy short territory at 71% awaiting retracement back down.
Nasdaq chart with retail and institutional sentiment
DAX Technical analysis, overview, strategies, and levels
There were plenty of breaches in the DAX's 1st Support level yesterday, offering some buy-on-reversal opportunities before an eventual break in its key pivot point to favor contrarian breakout strategies instead. Only a handful of its components finished higher including Deutsche Bank and some medical stocks, with the losses largest for airliner Lufthansa and automotive parts manufacturing company Continental whose CEO warned staff of potential forced layoffs. Asia is lower this morning and futures are in the red with a move here already close to today’s key pivot point.
IG client* sentiment for the DAX
And any further downside moves that run contrary to its bull trend technical overview would aid retail traders holding a majority short bias at 57% as of this morning.
DAX chart with retail 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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