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.

Fresh record high for the Nasdaq, Dow and DAX finish up

Retail and CoT shorts hurt in the Dow, range-trading in the DAX slows.

Dow Technical analysis, overview, strategies, and levels

What started yesterday with a strong session out of China ended in a higher finish in the US with the Dow crossing and closing above the last of its main daily long-term moving averages (MA), the 200-day MA. With the exception of Walmart, all its components avoided losses with the gains largest for Goldman Sachs, Boeing, and Walgreens ahead of its earnings later this week. Defensive utilities aside, all US sectors finished higher and where consumer discretionary and communications outperformed. ISM's non-manufacturing PMI (Purchasing Managers Index) reading beat expectations by a healthy margin.

IG client* and CoT sentiment for Dow

The latest moves however haven't been in favor of traders who are holding a majority short bias, with retail sell bias up at 59% and CoT (Commitment of Traders) speculators short bias reduced but still in heavy sell territory at 74% following a reduction in shorts by 1,321 lots and an increase in longs by 89 lots.

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

A stellar session for the tech-heavy Nasdaq, already taking its price nearly towards its Weekly 1st Resistance level as its bull trend technical overview remains intact, and where it has now breached the upper end of its bull trend channel. Nearly all its components outperformed, but it was Tesla that took the attention with double-digit percentage gains that took its share price above $1,400 in after-hours trading. Xilinx and Amazon were also outperformers, the latter's share price breaching the $3,000 level. The handful of its components that finished lower included Dollar Tree and Amgen.

IG client* and CoT sentiment for Nasdaq

Retail short bias is squeezed on the latest moves with the heavy sell sentiment dropping a notch to 72%. On the CoT side, they remain long Nasdaq and with an increase in consolidated longs by 774 lots and a drop in shorts by 196 lots, that bias is up a notch to a heavy long 69%.

Nasdaq chart with retail and institutional sentiment

DAX Technical analysis, overview, strategies, and levels

Here too, the DAX couldn't avoid the gains in equities on risk appetite that was sparked with a significant move out of China yesterday. Its price is making its way towards a short-term resistance level, and where most of its main indicators are flashing green after stalling heavily within the roughly 12,000-12,500 levels. Wirecards's volatility and double-digit percentage plummet and Beiersdorf's finish lower aside, all its components finished higher, the gains highest for Deutsche Bank, Infineon, and Daimler. Yesterday's German factory orders registered an increase though was below expectations, and we'll get industrial production shortly.

IG client* and CoT sentiment for DAX

Lastly, in sentiment, retail bias is still heavy short but instead of increasing as is usually the case of range-trading moves, the bias has dropped a notch to 66% instead.

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.