Nasdaq outperforms, Dow and DAX finish higher
Retail bias in heavier short territory for the tech-heavy Nasdaq on a lack of retracement.
Dow Technical analysis, overview, strategies, and levels
The Dow managed to undo some of the losses registered the day before, failing to reach either of its key pivot points and in turn unable to offer a strategic play off of the key levels. Amongst its components, Disney, Apple (which hit a record high) and Microsoft were the outperformers, the handful finishing in the red including Dow, Walmart (following its strong session the day before after a report it would launch an Amazon Prime competitor), and Merck. As a sector, materials suffered the heaviest casualties, while tech, consumer discretionary, and financials outperformed. In earnings, Walgreens will be releasing its figures, and when it comes to US data we'll get unemployment claims today expected to remain above a million, and PPI (Producer Price Index) figures tomorrow.
IG client* and CoT sentiment for Dow
A lack of a price drop has meant retail bias remains in majority short territory, rising to 56% as of this morning.
Dow chart with retail and institutional sentiment
Nasdaq Technical analysis, overview, strategies, and levels
It's become a common theme for the Nasdaq, its price making fresh highs but offering little beyond its key pivot points, with a break of yesterday's 1st Resistance level once again testing conformist buy breakout strategies on a lack of upside follow through. Chinese e-commerce JD.com outperformed with Biogen (the biotech company submitting an Alzheimer's drug to the FDA for approval), while in the bottom Alexion Pharmaceuticals, Fastenal, and Tesla. From a technical standpoint, all its main indicators are flashing green unlike other indices in this report where although the overview is bullish, it has stalled more heavily and failed to offer fresh record highs.
IG client* and CoT sentiment for Nasdaq
That has also meant that retail short bias is heaviest here by a healthy margin, rising from 70% to 73% on yesterday's price moves and in much greater need of a retracement to unwind shorts initiated at far lower price levels.
Nasdaq chart with retail and institutional sentiment
DAX Technical analysis, overview, strategies, and levels
As with the Dow and FTSE, the price movement here was also limiting and within its key pivot points, as its bull trend technical overview stalls heavily near the highs, and where on most days has tested buy breakout strategies with a lack of significant follow through. Amongst its outperformers, RWE and Deutsche Post (whose earnings beat expectations) stood out, and while Wirecards's volatility dropped (relatively speaking), it still experienced the largest percentage change and finishing at the very bottom. A stronger Asian session this morning has taken futures higher and closer to today's 1st Resistance level, and in German data we've got trade expected to show a larger-than-previous surplus.
IG client* and CoT sentiment for DAX
Retail bias here (like the FTSE) is little changed on a relative lack of change in price, but unlike the UK index where the bias is heavy to the long side, here it's majority short.
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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