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.

Nasdaq closes at a fresh record, Dow and DAX stall

Retail short bias in the Nasdaq surges as longs unwind, Non-Farm Payrolls the next item of importance.

Dow Technical analysis, overview, strategies, and levels

A lack of upside movement for the Dow meant a conformist buy breakout strategy failed off of yesterday's 1st Resistance level, aiding contrarian sell instead as its bull trend technical overview continues to stall and fails to mimic the tech-heavy Nasdaq. Amongst its components, Pfizer was the outperformer with the biggest percentage gain after it reported positive data from its early stage coronavirus vaccine trial, but plenty of its components were in the red with Walgreens at the very bottom, and energy giants' ExxonMobil and Chevron not that far off. Daily coronavirus cases in the US have crossed the 50,000 mark, and hopes of further fiscal stimulus have failed to subside with monetary expectations of a pledge of low interest rates out of the US Federal Reserve (Fed) following its latest minutes. In terms of data, it's a big day with Non-Farm Payrolls expected to show gains after last month's controversial reading, and following an increase in API's reading yesterday.

IG client* and CoT sentiment for Dow

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

Unlike the Dow, conformist breakout strategies outperformed as the tech-heavy Nasdaq powered higher to a record close. Biopharmaceutical company Amgen was the outperformer here after winning a patent battle against Novartis, followed by Netflix in second with more positive reviews from stock analysts following a recent hire. A lot of attention went to Tesla whose share price hit a fresh record high and overtook Toyota as the world's largest carmaker by market worth, rising in after-hours and ahead of its delivery and production numbers set for release later today. But there were plenty of its components finishing lower including tech company Xilinx's share price retracing back down after its surge earlier this week, and Western Digital.

IG client* and CoT sentiment for Nasdaq

In sentiment, the lack of a retracement has meant retail short bias has surged to a heavy short 74%, far higher than any other index in this report as longs get tempted into unwinding.

Nasdaq chart with retail and institutional sentiment

DAX Technical analysis, overview, strategies, and levels

As with the FTSE, the outperforming strategy for the German DAX was a conformist buy-on-reversal off of yesterday's 1st Support level, its price crossing but failing to close below its 200-day moving average. Health care company Fresenius was the outperformer followed by Beiersdorf, but in the end most of its components finished lower with Wirecard once again registering the biggest percentage change and this time around at the very bottom. Continental and Vonovia were hardest hit amongst the rest. In German data, manufacturing out of Markit beat expectations and employment data certainly was upbeat even if its unemployment rate worsened, and we'll get final services data tomorrow.

IG client* and CoT sentiment for DAX

As for trader bias, once again a relative lack of change in price has translated into an unchanged majority short 59% sell bias amongst retail traders as of this morning.

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

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.