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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Fresh record high for S&P 500 as indices finish higher

Dow, Nasdaq and DAX all in a bull trend overview as trade optimism improves, though future gains at risk of reversal should talks fail.

Charts Source: Bloomberg

Dow Technical analysis, overview, strategies, and levels

Risk appetite was off to a strong start yesterday, up next we've got more tech stocks which will only slightly affect this index, with the Nasdaq likelier to experience greater volatility. Microsoft lead the gains in this index’s components as the tech sector outperformed, while low-risk utilities lagged, as did real estate and energy. The index's price is above all its main moving averages (and its 50-day moving average crossed above its 100-day), and on the weekly the long-term bias is far clearer compared to the short-term that has been met with far too many intraday consolidatory moves.

Current Technical Overview Bull Trend - Initializing
Technical Overview Conformist Strategies Buy 1st Support After Reversal, Buy 1st Resistance Upon Breakout From Below
Technical Overview Contrarian Strategies Sell 1st Resistance At/Before Price, Sell 1st Support Upon Breakout From Above
S/L for 2nd Resistance 27508
2nd Resistance 27418
S/L for 1st Resistance 27329
1st Resistance 27239
Relative Starting Point 27059
1st Support 26879
S/L for 1st Support 26789
2nd Support 26700
S/L for 2nd Support 26610

IG client and CoT sentiment for Dow

But retail traders are hoping they won't experience the same upside volatility experienced in both Nasdaq and DAX, which would push sentiment into extreme short territories as has been the case with the other two, as instead it has dropped 5% to a heavy short 66%.

Dow sentiment Source: IG charts
Dow sentiment Source: IG charts

Dow chart with retail and institutional sentiment

Dow Source: IG charts
Dow Source: IG charts

Nasdaq Technical analysis, overview, strategies, and levels

Alphabet's (Google) earnings yesterday showed a drop in profits on rising costs for new products and services, but this tech index surged to fresh highs breaching its mid-term resistance level as trade optimism improves, and in line with its bull trend technical overview on both weekly and daily, and where nearly all its main technical indicators are flashing green. In earnings Apple on Wednesday and Facebook on Thursday will also be closely watched, as well as AMD (Advanced Micro Systems) today.

Current Technical Overview Bull Trend - Initializing
Technical Overview Conformist Strategies Buy 1st Support After Reversal, Buy 1st Resistance Upon Breakout From Below
Technical Overview Contrarian Strategies Sell 1st Resistance At/Before Price, Sell 1st Support Upon Breakout From Above
S/L for 2nd Resistance 8287
2nd Resistance 8252
S/L for 1st Resistance 8217
1st Resistance 8182
Relative Starting Point 8113
1st Support 8044
S/L for 1st Support 8009
2nd Support 7974
S/L for 2nd Support 7939

IG client and CoT sentiment for Nasdaq

Retail traders here have been desperately anticipating a move lower with the extreme short bias of 81% yesterday, and the upside squeeze has pushed that bias 2% lower to 79% but remains in extreme short territories.

Nasdaq sentiment Source: IG charts
Nasdaq sentiment Source: IG charts

Nasdaq chart with retail and institutional sentiment

Nasdaq Source: IG charts
Nasdaq Source: IG charts

Dax Technical analysis, overview, strategies, and levels

After a brief intraday session lower, the German DAXsurged higher to make fresh highs ahead of the November 1st resumption of bond purchases with auto shares outperforming, as it has been nearly session after session of gains where there have only been a few brief interruptions. On average however, while the weekly outlook is a bull trend, on the daily it has been stalling when viewed in terms of intraday movement.

Current Technical Overview Bull Trend - Stalling
Technical Overview Conformist Strategies Buy 1st Support After Reversal, Buy 1st Resistance Upon Breakout From Below
Technical Overview Contrarian Strategies Sell 1st Resistance At/Before Price, Sell 1st Support Upon Breakout From Above
S/L for 2nd Resistance 13197
2nd Resistance 13150
S/L for 1st Resistance 13103
1st Resistance 13056
Relative Starting Point 12962
1st Support 12867
S/L for 1st Support 12820
2nd Support 12773
S/L for 2nd Support 12726

IG client and CoT sentiment for DAX

That has been difficult news for retail traders which was at an extreme short 80% yesterday and getting squeezed dropping that bias 3% to a heavy short 77%.

DAX sentiment Source: IG charts
DAX sentiment Source: IG charts

DAX chart with retail and institutional sentiment

DAX Source: IG charts
DAX Source: IG charts
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