Fresh record highs for the Dow while Nasdaq and DAX finish slightly lower
Bull trend technical overview still intact for all three despite lack of upside momentum intraday.
Dow Technical analysis, overview, strategies, and levels
A fresh record high for this index yesterday, and where Disney was the top performer following news that the first day of launching its streaming services netted 10 million subscribers. One of the top performers included Walmart, which will be announcing its earnings today. In terms of sectors, energy and financials were hurt while defensive real estate and utilities outperformed. And as always, intraday gains remained relatively limited and hence rendering technical strategies less useful on average daily ranges as its bull trend technical overview lacks the necessary momentum for significant breakout strategies.
IG client and CoT sentiment for Dow
Retail bias remains unchanged (and squeezed) at an extreme short 77%, and we’ll find out tomorrow if the opposite extreme long institutional bias has budged at all.
Dow chart with retail and institutional sentiment
Nasdaq Technical analysis, overview, strategies, and levels
While the Dow (and S&P 500) made fresh record highs yesterday, the Nasdaq finished slightly in the red, and where in terms of performers Netflixwas near the bottom as opposed to the Dow’s Disney that outperformed on its streaming success that is likely to pose a threat to the former’s future subscriber base. In earnings, Nvidia will be up next today, though thus far the price movement in this tech index has remained relatively limiting and offering a lack of momentum (as has been the case with other indices in this report).
IG client and CoT sentiment for Nasdaq
In sentiment, it has pushed 3% higher to an extreme short 80%, now identical to extreme short retail bias in the DAX.
Nasdaq chart with retail and institutional sentiment
DAX Technical analysis, overview, strategies, and levels
With the DAX finishing slightly lower but managing to recover off yesterday’s 1st Support level, most of its components were underperforming including automakers’ share prices albeit not by a significant margin. And today’s economic calendar will involve significant fundamental data for Germany, with preliminary GDP (Gross Domestic Product) of big concern given last quarter’s contraction. Should it show (what would be a second consecutive) contraction and that would put the Eurozone’s manufacturing powerhouse in a recession. And while that’s generally bad news for riskier assets like equities, anticipating further monetary easing from the European Central Bank could prevent a larger than expected selloff.
IG client and CoT sentiment for DAX
DAX chart with retail and institutional sentiment
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