Fresh record highs for Dow and Nasdaq as risk appetite improves
Retail short bias grows slightly in the Dow but at extreme short levels in both Nasdaq and DAX.
Dow Technical analysis, overview, strategies, and levels
Fresh record highs for US indices, and the Dow was no exception to that rule, even if it was the Nasdaq that outperformed. In terms of sectors, nearly all of them were flashing green with energy and utilities leading, and where industrials were only slightly in the red. As for its components, health companies and Apple were at the top, Nike was up after its earnings release yesterday, while Boeing was at the very bottom underperforming the most following news that it would suspend production of its best-selling 737 MAX jetliner.
IG client and CoT sentiment for Dow
As for sentiment, retraceable moves like the one we saw yesterday (even if it finished higher and posted a fresh intraday record high) have helped prevent retail short bias from reaching extreme levels as it offers a chance for range-trading shorts to get out, and as a result majority short bias is down a notch at 65%.
Dow chart with retail and institutional sentiment
Nasdaq Technical analysis, overview, strategies, and levels
A fresh record high for the Nasdaq, as the tech index outperformed compared to the other main US indices, and where in terms of its components Tesla lead the gains outperforming compared to the rest. That has kept its bull trend technical overview intact, even if on average the gains have been limiting intraday. Nearly all its main technical indicators on both the daily and weekly outlook continue to flash green, and combined with a trending (ADX) Average Directional Index. Details are expected to emerge regarding the US-China phase one trade deal, and hence risk appetite (and risk assets like equities) could be in for a move upon the release of any fresh news.
IG client and CoT sentiment for Nasdaq
In sentiment, retail bias remains stuck at an extreme short 77%, where nearly each of those shorts have been initiating at lower price levels and hence are in need of a retracement back down to unwind in profit.
Nasdaq chart with retail and institutional sentiment
DAX Technical analysis, overview, strategies, and levels
European indices were in for a significant move higher yesterday as US indices made fresh record highs, and the German DAX was no exception to that rule, breaching above its short-term resistance level and keeping its stalling bull trend technical overview intact even if its price retraced off of highs made earlier in the session. In the background, investors are still holding their breath to see if the trade front between the US and EU will worsen. As for its components, Deutsche Bank outperformed, though overall only a few were in the red including VW that posted only a slight decline.
IG client and CoT sentiment for DAX
Retail traders have been range-trading the index, and hence the slight move higher has pushed retail bias back towards extreme short levels, standing 5% higher than yesterday’s bias for an extreme short bias of 78% as of this morning.
DAX chart with retail and institutional sentiment
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.
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
