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 retreats, futures point lower on tested Asia session

Retail shorts unwind in Dow and Nasdaq, still stuck in DAX.

Dow Technical analysis, overview, strategies, and levels

The Dow finished the session close to where it started following oscillations that flirted with higher highs and intraday lower lows, with neither of its key pivot points reaching. In earnings amongst its components, Goldman Sachs and its reliance on trading helped it beat Q2 earnings forecasts, and so did UnitedHealth reiterating its full-year profit guidance even as it suffered from an 'unprecedented' period of deferrals on the postponement or cancellation of elective surgeries. Johnson & Johnson will be releasing its figures today, with non-component financial institutions including Bank of America releasing their results as well. US manufacturing data beat expectations across the board yesterday, and today we'll get more of it out of the Federal Reserve Bank of Philadelphia, as well as retail data and unemployment claims. US-China tensions have failed to subside, and the Asian session is tested this morning despite better than expected Chinese GDP data.

IG client* and CoT sentiment for Dow

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

The Nasdaq underperformed compared to the Dow again, its price recovering off of yesterday's 1st Support level to aid conformist strategies significantly, with futures moving back lower this morning. By the close, semiconductor ASML was hit hardest following its earnings miss despite better than previous figures, with Amazon and Nvidia amongst those in the bottom. Expedia and Marriott who are usually prone to more volatility on coronavirus news outperformed significantly during the session. The big one in terms of earnings for the index's component is Netflix today, a part of the closely watched and sought after FAANG (Facebook, Apple, Amazon, Netflix, Google/Alphabet) stocks whose share price recently made fresh record highs.

IG client* and CoT sentiment for Nasdaq

The retracement here has given a chance for shorts to close out, with the majority sell bias dropping to just 55% from 59% yesterday.

Nasdaq chart with retail and institutional sentiment

DAX Technical analysis, overview, strategies, and levels

Although the DAX finished higher, the gains were short-lived land as of this morning futures are pointing lower, with Chinese shares hit hardest in the Asian session. Overall, its price oscillating near the highs and failing to reach either of yesterday’s key pivot points. By the close, as with airplane related stocks globally, MTU Aero Engines outperformed amongst its components, with Wirecard at the very bottom and once again experiencing the most volatility. As much as it'll be a significant two days for the euro, the same holds true for the German DAX given the ECB (European Central Bank) will be announcing its monetary policy today, and EU leaders are expected to meet tomorrow regarding the bloc's long-term budget and a massive €750bn coronavirus recovery fund.

IG client* and CoT sentiment for DAX

Retail traders are hoping for downside movement in this index, as heavy short bias has gotten heavier rising to 76% and not far off from extreme sell levels.

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.