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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Dow and Nasdaq finish higher as risk appetite buoyed by Fed rate cut

Dow, Nasdaq, and DAX continue to show a bull trend technical overview that has thus far been supported by accommodative central banks.

NASDAQ Source: Bloomberg

Dow Technical analysis, overview, strategies, and levels

With the US Federal Reserve announcing its monetary policy, share prices were in for a stronger finish higher. The net result for this pair's price where its technical outlook on both the daily and weekly were bullish has taken it closer to its mid-term support level. In terms of sector performance, all but energy and financials outperformed, the latter affected by a rate cut and energy giants from the former releasing their earnings tomorrow.

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 27607
2nd Resistance 27516
S/L for 1st Resistance 27426
1st Resistance 27335
Relative Starting Point 27153
1st Support 26971
S/L for 1st Support 26880
2nd Support 26790
S/L for 2nd Support 26699

IG client and CoT sentiment for Dow

As for sentiment, retail bias has moved higher into heavier short territories as range-trading shorts get squeezed, taking the bias to 72% from 69% yesterday morning.

Dow sentiment Source: IG charts
Dow sentiment Source: IG charts

Dow chart with retail and institutional sentiment

Dow Source: IG charts
Dow Source: IG charts

Nasdaq Technical analysis, overview, strategies, and levels

Risk appetite on the one hand is a significant driver for any index including this tech index whose price posted fresh intraday highs and a higher close, and the combination of earnings from both Apple and Facebook resulted in better than expected figures. While plenty are worried about whether a big retracement is in store for equities, from a technical overview standpoint it remains an initializing bull trend holding slightly above its mid-term resistance level.

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 8302
2nd Resistance 267
S/L for 1st Resistance 8231
1st Resistance 8195
Relative Starting Point 8123
1st Support 8052
S/L for 1st Support 8016
2nd Support 7980
S/L for 2nd Support 7944

IG client and CoT sentiment for Nasdaq

Retail sentiment was at an extreme short 79% only a couple days ago, and today it stands at a heavy short 76% where nearly all those short positions have been initiated at lower price levels and as a result are in need of retracement back down.

Nasdaq sentiment Source: IG charts
Nasdaq sentiment Source: IG charts

Nasdaq chart with retail and institutional sentiment

Nasdaq Source: IG charts
Nasdaq Source: IG charts

Dax Technical analysis, overview, strategies, and levels

Whether the recent rally that was done on the back of not better German data but anticipated European Central Bank (ECB) easing can be sustained or not was certainly a question on investors' minds as the index's price breached fresh highs in line with its stalling bull trend, and following yesterday's US central bank announcement risk appetite has improved. In German data, preliminary Consumer Price Index (CPI) figures showed a 0.1% reading that was a notch higher than previous, while employment data showed its unemployment rate unchanged at 5% on a 6K change. As for retail bias, extreme short at 79% as of yesterday morning has dropped by a percent to 78% as of this morning.

urrent 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 13167
2nd Resistance 13118
S/L for 1st Resistance 13070
1st Resistance 13022
Relative Starting Point 12926
1st Support 12829
S/L for 1st Support 12781
2nd Support 12733
S/L for 2nd Support 12684

IG client and CoT sentiment for DAX

DAX sentiment Source: IG charts
DAX sentiment Source: IG charts

DAX chart with retail and institutional sentiment

DAX Source: IG charts
DAX Source: IG charts
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Be ready to act on ECB opportunities

Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in 12 December 2024.

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  • Why is the Governing Council announcement important for traders?

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