Nasdaq’s mid-term resistance level holds while the DAX’s gets breached
Tech stocks in focus this week with earnings from technology heavyweights’ Microsoft, Amazon, and Alphabet.
DOW: Battered by Boeing and Johnson & Johnson but finishing the week only slightly lower
Worsening news for both Boeing and Johnson & Johnson ensured they both were the worst performers on Friday and were a drag for this index that finished the week only slightly in the red and continuing to test its already stalling bull trend weekly technical overview. Earnings season continues, but the strong dollar continues to eat into earnings, and with the tech sector likely to be more volatile with tech heavyweights announcing their earnings this week. Shorts got a chance to take profit on Friday's price drop, and hence the bias is down 3% to a (still) heavy short 67%. Institutional bias has dropped a few percent but remains in opposite extreme long territories, with short positions rising by 1,082 lots.
NASDAQ: Mid-term resistance level holds despite a higher finish for the week
It’s a big week for the tech sector, and in turn this tech index whereby Microsoft, Amazon, and Alphabet (google) will be announcing their earnings this week and hence putting more focus on the Nasdaq over the Dow. As with the Dow retail short traders took some profit on Friday, and given the bulk of their shorts were initiated at lower price levels it’ll need a bigger downward move to aid them in unwinding heavy short positions. But here institutional bias is rising not dropping, up 4% to a majority long 62% on an increase in longs by 3,447 lots outdoing a smaller increase in shorts by only 578 lots.
DAX: Briefly breaching its mid-term resistance level for the week
As with last week’s volatile technical outlook, that looks to be the case this week as well with European earnings. The index while breaching last week’s 1st Resistance level did eventually retrace, and aided retail shorts squeezed on the pop higher in reducing that extreme short bias by 4% since the start of last week. More uncertainty following the weekend vote out of the UK won’t aid investor sentiment, but attention will be shifting towards this Thursday’s manufacturing data out of Germany (and the rest of the Eurozone) as well as the European Central Bank’s (ECB) monetary policy announcement given recent gains are on the back of monetary easing.
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