Fresh record highs for the Nasdaq, Dow and DAX register slight gains

Retail short bias in all three get tested once again, percentages rise.

Dow Technical analysis, overview, strategies, and levels

The Dow while tested earlier in yesterday’s session, managed to finish higher. US Federal Reserve (Fed) minutes showing optimism despite coronavirus risks and strong housing data certainly didn’t hurt, as it was a ‘buy everything’ moment in the financial market and could be at risk of at least a short-term undoing. Overall US sector performance showed energy and tech outperform with financial not that far off, while defensive utilities and real estate contracted. Amongst its components, Goldman Sachs and Disney were up top, while Walmart and Travelers suffered losses. Its previous daily technical overview that was volatile has shifted to an overview matching that of its weekly, a stalling bull trend failing to offer significant follow-through, and hence contrarian strategies can’t be ruled out.

IG client* and CoT sentiment for Dow

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

It’s becoming familiar territory for the Nasdaq, with a fresh record high keeping its bull trend technical overview intact whereby all its main indicators are flashing green, but where once again it has been occurring in a slow and limiting fashion intraday as it didn’t offer much beyond yesterday’s 1st Resistance level. In terms of its components, Tesla was surging once more to outperform, and Nvidia too registered big gains. Those lagging included American Airlines, with the travel sector continuing to get hurt due to the coronavirus.

IG client* and CoT sentiment for Nasdaq

Retail shorts here continue to get tested heavily, with the bias rising 3% to a heavy short 71%.

Nasdaq chart with retail and institutional sentiment

DAX Technical analysis, overview, strategies, and levels

While the overall flows are risk-related with the DAX hitting fresh highs before retracing as China cut its benchmark loan prime rate, its daily technical overview has moved back to a stalling bull trend that has offered few gains intraday for buy breakout strategies. Deutsche Telekom outperformed following its earnings release which showed net profit rising and forecast future growth for 2020 expecting revenue to rise, and few of its components were in the red which included Deutsche Bank. As for German data, we’ll get PPI (Producer Price Index) figures and GfK's consumer climate.

IG client* and CoT sentiment for DAX

In sentiment, retail bias has surged back up into extreme short territory, standing now at 83%.

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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