Potential trade deal delay dents risk appetite, Dow, Nasdaq and DAX finish lower
Limited risk-taking likely ahead of tonight’s fundamental US central bank announcement, where pivot points are set to get broken.
Dow Technical analysis, overview, strategies, and levels
The current bullish technical overview on both daily and weekly outlooks were tested yesterday earlier in the session and although significant tech earnings results from Facebook and Apple will be due soon, they’ll affect the tech sector more so than the rest. Crucial US data is up next both with Gross Domestic Product (GDP) figures as well as Friday's Non-Farm Payrolls report, but sandwiched in between is tonight's monetary policy out of the US central bank, which will be a driving force for where risk appetite will lie. Lower interest rates and monetary intervention would force more money into riskier assets, and hence bond yields should also be noted in the context of trading the index tonight.
| Current Technical Overview | Bull Trend - Initializing |
| Technical Overview Conformist Strategies | Buy 1st Support After Reversal, Buy 1st Resistance Upon Breakout From Below |
| Technical Overview Contrarian Strategies | Sell 1st Resistance At/Before Price, Sell 1st Support Upon Breakout From Above |
| S/L for 2nd Resistance | 27490 |
| 2nd Resistance | 27400 |
| S/L for 1st Resistance | 27311 |
| 1st Resistance | 27222 |
| Relative Starting Point | 27043 |
| 1st Support | 26864 |
| S/L for 1st Support | 26775 |
| 2nd Support | 26686 |
| S/L for 2nd Support | 26596 |
IG client and CoT sentiment for Dow
Dow chart with retail and institutional sentiment
Nasdaq Technical analysis, overview, strategies, and levels
It's a crucial phase for this tech index with earnings reports from Facebook and Apple, and the results will be crucial given the influence the tech heavyweights have on the overall sector, and following Alphabet’s (Google) earnings miss. Tesla underperformed the most as overall it was the tech sector and communications that underperformed.
| Current Technical Overview | Bull Trend - Initializing |
| Technical Overview Conformist Strategies | Buy 1st Support After Reversal, Buy 1st Resistance Upon Breakout From Below |
| Technical Overview Contrarian Strategies | Sell 1st Resistance At/Before Price, Sell 1st Support Upon Breakout From Above |
| S/L for 2nd Resistance | 8230 |
| 2nd Resistance | 8196 |
| S/L for 1st Resistance | 8161 |
| 1st Resistance | 8127 |
| Relative Starting Point | 8059 |
| 1st Support | 7990 |
| S/L for 1st Support | 7956 |
| 2nd Support | 7922 |
| S/L for 2nd Support | 7888 |
IG client and CoT sentiment for Nasdaq
Going into tonight's central bank event retail traders are heavy short at 75% as fresh (and averaged-in) retail shorts slightly dropped out, while CoT bias is a majority long 61%.
Nasdaq chart with retail and institutional sentiment
Dax Technical analysis, overview, strategies, and levels
The index's bull trend technical overview continues to stall regardless of whether it posts a higher finish, as the gains intraday (when they occur) have been mostly limiting at best, creeping towards fresh highs as opposed to a sudden surge. With risk appetite set to get affected by tonight's FOMC, the German index isn't in the same jurisdiction but certainly will be indirectly affected by it.
| Current Technical Overview | Bull Trend - Stalling |
| Technical Overview Conformist Strategies | Buy 1st Support After Reversal, Buy 1st Resistance Upon Breakout From Below |
| Technical Overview Contrarian Strategies | Sell 1st Resistance At/Before Price, Sell 1st Support Upon Breakout From Above |
| S/L for 2nd Resistance | 13159 |
| 2nd Resistance | 13113 |
| S/L for 1st Resistance | 13066 |
| 1st Resistance | 13020 |
| Relative Starting Point | 12928 |
| 1st Support | 12835 |
| S/L for 1st Support | 12789 |
| 2nd Support | 12743 |
| S/L for 2nd Support | 12697 |
IG client and CoT sentiment for DAX
In sentiment, retail traders remain short the index with the bias at an extreme short 79% compared to yesterday’s 77%.
DAX chart with retail and institutional sentiment
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