Tech outperforms aiding the Nasdaq, Dow and Dax drop
Fresh retail shorts unwind in Dow and DAX, lack of a drop in Nasdaq keeps heavy short bias unchanged.
Dow Technical analysis, overview, strategies, and levels
The Dow was in for a day of slight retracement, though its price failed to reach either of yesterday's key pivot points. Most of its components finished in the red, with Boeing, Chevron and Travelers amongst those suffering the biggest percentage losses. Nike outperformed and was among the handful finishing higher for the session, which also included tech giants' Apple and Microsoft. All US sectors suffered contractions with the exception of tech and consumer discretionary, the losses heaviest for utilities and energy. In US data, ADP's non-farm estimate showed a 20m+ figure, and unemployment claims are up next expected to show another multi-million increase. And then there's Non-Farm Payrolls (NFP) tomorrow, which will be closely watched by traders and investors alike.
IG client* and CoT sentiment for Dow
In sentiment, retail bias has dropped slightly as fresh shorts exit, at 57% as of this morning.
Dow chart with retail and institutional sentiment
Nasdaq Technical analysis, overview, strategies, and levels
While the Dow may have finished the session lower, with tech outperforming, the Nasdaq managed to finish slightly higher. Its price also failed to reach either of yesterday's key pivot points, its bull trend channel still holding thus far. Amongst its components, at the bottom included Marriott and Regeneron Pharmaceuticals, the latter's share price partially undoing gains made the day before after it reported its Q1 earnings and said its Covid-19 treatment could be available by the fall. The outperformers included MercadoLibre gaining almost 20% after the e-commerce company posted earnings that beat expectations, and Activision following its strong earnings on Tuesday.
IG client* and CoT sentiment for Nasdaq
The lack of a drop in the Nasdaq has meant that fresh shorts haven't been able to unwind as some have in the Dow, and hence retail sentiment remains unchanged in heavy short territory at 64%.
Nasdaq chart with retail and institutional sentiment
DAX Technical analysis, overview, strategies, and levels
As with both the Dow and Nasdaq, here too the DAX's price failed to reach either of its key pivot points, oscillating and testing its current stalling bull trend technical overview that has been tested following a break in its daily bull trend channel. Amongst the DAX's components, most were in the red led by Wirecard following news of a top investor calling for its chief to be removed after KPMG's report, and BMW not that far off on its warning of the long-term impact from the coronavirus. The handful that finished higher included semiconductor manufacturer Infineon, and Belesdorf. On the economic calendar we get German industrial production today and trade data tomorrow, both expected to be relatively low-impacting in the grand context of risk appetite.
IG client* and CoT sentiment for DAX
As for sentiment, the slight drop here has given fresh shorts a chance to unwind shifting the bias to the middle 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.
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