Fresh record high for the Nasdaq as tech sector outperforms
Retail sell bias drops in Dow, Nasdaq and DAX but remains majority short.
Dow Technical analysis, overview, strategies, and levels
US data showed preliminary manufacturing and services PMIs (Purchasing Managers Index) only just below expansionary figures, while new home sales was better than expected after Monday's disappointing drop in existing home sales. And although we get FHFA's HPI (Housing Price Index) low-impacting item later today, those awaiting fundamental updates will be likely to note tomorrow's string of US data. Coronavirus cases are still rising in some parts of the US and is likely to remain the case, with record surges in a few states. On the other end, fresh fiscal stimulus remains a possibility for next month according to the US Treasury Secretary. For the Dow, its price failed to reach either of yesterday’s key pivot points, and amongst its components, Nike outperformed ahead of its earnings tomorrow, and where IBM and Verizon were at the very bottom.
IG client* and CoT sentiment for Dow
Dow chart with retail and institutional sentiment
Nasdaq Technical analysis, overview, strategies, and levels
Another fresh record close for the tech-heavy Nasdaq, its price moving above yesterday’s 1st Resistance level offering only some before partially retracing back down for the session to aid contrarian reversals off of the key pivot point over conformist buys. The latest moves have remained with its bull trend channel, and where most of its main indicators continue to flash green. Expedia was on top in terms of component performance by the close (though has partially retraced in after hours), the online travel company announcing it would be retiring its HomeAway rental service to focus on travel site Vrbo, but there were plenty finishing lower including Western Digital suffering the biggest loss, and Micron Technology second from the bottom after an analyst downgrade. Apple made a fresh record high with investors cheering news earlier this week that it would use its own chips for the Mac at the expense of Intel, the latter finishing lower for the session.
IG client* and CoT sentiment for Nasdaq
Nasdaq chart with retail and institutional sentiment
DAX Technical analysis, overview, strategies, and levels
The German DAX was in for a higher finish as well, going beyond yesterday’s 1st Resistance level but like the Nasdaq offered only some in favor before a partial retracement back down as its bull trend technical overview continues to stall. In data, German preliminary manufacturing and services PMIs showed ongoing contraction with sub-50 readings for both, but a much better reading than that of May. We'll get IFO's business sentiment figure today and GfK's consumer climate tomorrow, as well as the ECB's (European Central Bank) minutes. Amongst its components, Wirecard was on top by a big margin after its CEO was arrested, and expect its share price to remain volatile given where its price was and likely ongoing media attention. Otherwise, amongst the rest Bayer and VW outperformed (an unconfirmed report saying the car giant was exploring the acquisition of car rental group Europcar), the few finishing in the red including MTU Aero Engines and real estate company Vonovia.
IG client* and CoT sentiment for DAX
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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