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.
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 chart with retail and institutional sentiment
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 chart with retail and institutional sentiment
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 chart with retail and institutional sentiment
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