Nasdaq, Dow, and DAX finish the week up

Dow Technical analysis, overview, strategies, and levels

The Dow finished the week higher, its price briefly breaching its Weekly 1^st Resistance level and aiding conformist breakout strategies on the Daily at the end of the week as equities defy the negative gravitational pull from economic data. All its components finished in the green on Friday, outperformers including energy giant ExxonMobil, Cisco, and Boeing. The US sector that gained the most was energy followed by industrials, with health gaining the least. And while there's less action expected this week on the earnings front, there will be significant US data including CPI (Consumer Price Index) and retail, as well as any updates on the US-China trade front.

IG client* and CoT sentiment for the Dow

Retail short bias has increased since the start of last week to a heavy short 70%, matching that of CoT (Commitment of Traders) speculators who increased shorts by 1,705 lots and longs by only 65 lots.

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

The Nasdaq was an outperformer last week against the Dow, clawing back more lost territory and keeping its bull trend technical overview intact, its price breaching its 1^st Resistance levels on both the Weekly and Daily at the end of last week. Friday's outperformers included Lam Research at the top following its FQ3 revenue and profits beat, and Tesla (its chief over the weekend suing local authorities in California over re-opening). There were a handful in the bottom, worst hit was IT service provider Cognizant following its earnings that although beat estimates, warned of a negative impact to Q2 earnings due to a ransomware attack.

IG client* and CoT sentiment for Nasdaq

The rise in the Nasdaq has seen retail short bias increase as longs get enticed into closing out, while unlike CoT speculator bias that's majority short in Dow and S&P500, it remains majority long here anticipating further upside movement.

Nasdaq chart with retail and institutional sentiment

DAX Technical analysis, overview, strategies, and levels

Conformist breakout strategies for the weekly outperformed for the German DAX, its price breaching last week's Weekly 1^st Resistance to close above it, and aiding in keeping its Daily technical overview of a staling bull trend intact following Thursday's price increase that offered a buy-breakout opportunity. Amongst its components, those in the red included MTU Aero Engines at the very bottom and airliner Lufthansa not that far off. The outperformers included Daimler and Siemens, the latter following news it would cut costs and continue with plans to float its energy business.

IG client* sentiment for the DAX

When it comes to sentiment, retail bias is usually quick to shift here on heavy range-trading, and at the start of last week the bias was a slight majority long 51%. The close higher has shifted that bias to majority short as range-trading longs close out and shorts initiate, starting this week with at a majority sell bias of 62%.

DAX chart with retail 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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