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 tops 10,000, Dow and DAX finish lower

Retail shorts drop in DAX and Dow on the retracement, get squeezed on Nasdaq’s fresh record high.

Dow Technical analysis, overview, strategies, and levels

The Dow underperformed for a change yesterday against the Nasdaq, but did offer a buy-on-reversal opportunity with a move off of yesterday's 1st Resistance level to aid conformist strategies. Only Apple, Microsoft and Walmart closed higher with fresh record highs for the two tech giants, while the rest of its components finished in the red with the losses heaviest for Boeing (which had been outperforming with double digits gains previously for a partial retracement). Only the tech and communication sector finished slightly in the green, the rest of the sectors contracting with energy and industrials suffering the most. We've got CPI (Consumer Price Index) figures out of the US and – more importantly – the US Federal Reserve's (Fed) decision and outlook, which is set to influence risk appetite and the greenback.

IG client* and CoT sentiment for Dow

In sentiment, the retracement has given a chance for fresh averaged-in retail shorts at the highs to get out, taking short bias down to 62%.

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

The Nasdaq didn't just outperform yesterday as both Dow and DAX contracted, but also briefly topped the 10,000 mark to post another fresh record high and breach the 10000 level (coinciding roughly with yesterday's 1st Resistance level). Outperformers included AMD, Netflix, and Microsoft, but there were plenty in the red including travel site Expedia, hotel chain Marriott, and Liberty Global. It was also noteworthy that Amazon, Apple, Facebook and Microsoft closed at new all-time highs with the combined market value closing in on $5 tn. As with other US indices (and global indices reliant on global improved risk appetite), the Fed's decision and outlook later today will be a closely watched event.

IG client* and CoT sentiment for Nasdaq

Due to the price increase, majority retail short bias has risen here instead of dropped as is the case with both Dow and DAX, and is in heavy short territory as of this morning at 71%.

Nasdaq chart with retail and institutional sentiment

DAX Technical analysis, overview, strategies, and levels

The DAX was in for a volatile session yesterday, and one where conformist technical overview strategies failed with a break below both of yesterday's key support levels before only partially retracing back up. Only a few of its components finished higher including Beiersdorf and SAP, while airplane engine maker MTU Aero Engines contracted the most. German trade data showed a record decline in April with exports plunging due to the coronavirus pandemic, taking its surplus from 21.6bn two months prior to just 3.2bn and follows the double digit contraction in Monday's industrial production figure.

IG client* and CoT sentiment for DAX

The price drop in the DAX however has been a much-needed boon for retail traders, and fresher averaged-in shorts were swift to close out as well as longs initiating to take yesterday's heavy short bias of 68% down to more moderate levels of 57% 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
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

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.