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.

US Senate passes $2tn stimulus package, House to vote tomorrow

Dow and Nasdaq relatively unchanged on the news, unemployment claims the next item of crucial importance.

Dow Technical analysis, overview, strategies, and levels

A two-day gain is a rare sight as of late, but that's what we got yesterday for the Dow before its futures pointed lower this morning despite a $2tn stimulus package unanimously passing in the Senate, with the House to vote on it tomorrow. The package includes $1,200 in direct payments to adults, $500 added for every child, increase in unemployment insurance, grants for airlines and cargo carriers’ employee wages, and a pool of $500bn of taxpayer money to make loans/investments in businesses, states, and municipalities affected by the virus. It also bans companies that take government loans from buying back stock until a year after loans area paid back. The next crucial item will be economic data out of the US tonight, where unemployment claims are expected to surge.

IG client* and CoT sentiment for Dow

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

Neither of yesterday’s key pivot points were reached for the Nasdaq, and in turn not offering a play for either conformist breakout or contrarian reversal strategies despite previous sessions offering plenty in favor of both. While a positive DMI (Directional Movement Index) cross did occur, technicals are far less relevant in the current uncertain coronavirus storm.

IG client* and CoT sentiment for Nasdaq

Retail bias shifted to the middle yesterday, but a brief dip has taken that bias back into slight majority long territory standing at 52%, less than that of larger speculative traders according to last Friday’s CoT (Commitment of Traders) report.

Nasdaq chart with retail and institutional sentiment

DAX Technical analysis, overview, strategies, and levels

The DAX managed to finish in the green yesterday, even if futures are down slightly this morning. In terms of stimulus news, while the US Senate passed its package, the German government also agreed to stimulus for the Eurozone’s manufacturing powerhouse, a €750bn package. In terms of its components, adidas and VW were relative outperformers, but a handful were in the red including airliner Lufthansa. Unlike the Nasdaq which didn’t offer a trading play yesterday, here its price broke through yesterday’s 1st Resistance level offering plenty before eventually retracing back down. In German data, IFO's business sentiment figures disappointed, and GfK's consumer sentiment figure is up next expected to drop as well.

IG client* and CoT sentiment for DAX

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.

React to global volatility

Market volatility continues as coronavirus dominates the global agenda. Trade with us to take advantage of:

  • Tight spreads – from just 1 point on major indices, and 2.8 on US crude
  • Guaranteed stops – they’re free to use, and you’ll only pay a small fee if they’re triggered
  • Round-the-clock assistance – our highly-skilled team are on hand to support you

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.