Daily Market Report: Dow, Nasdaq, & DAX
DAX retail bias shifts to heavy long on short profit-taking, technical overview shift as ECB inaction puts European equities at risk.
![Index](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/BG_trading_charts_strategy_forex_indices_0909809.jpg/jcr:content/renditions/original-size.webp)
DOW: Stalling at the highs as investors anticipate a reversal in Fed monetary policy
It’s all about the Fed this evening with US-China trade talk sentiment this morning dipping, and markets are continuing to price in a 0.25% rate cut. Much of the recent gains in US equities have been on the back of anticipated central bank easing, and any disappointment on that front could put those gains at significant risk and forcing US indices to suffer a similar fate that European indices have been facing following ECB inaction last week. Going into tonight’s event retail traders are heavy short at 71%, while institutional bias is extreme long at 86%.
![DOW](http://a.c-dn.net/c/content/dam/publicsites/igcom/Dubai/images/Monte/July-2019/31-07-2019/DOW.JPG/jcr:content/renditions/original-size.webp)
NASDAQ: Apple outperforms in after hours on diversification and better projections
Apple’s earnings results while disappointing on the iPhone front were seen as a boon to investors as growth in other areas emphasized diversification away from the tech giant’s smartphone sales and improved projections, taking its price higher in after hours. Overall, the tech index remains near the highs, and like other US indices (and global indices as well) awaiting the Fed’s decision this evening that isn’t just about whether recent gains in price can be sustained, but set the tone for the remainder of the year of what the Fed will be focusing on and what will cause it to react. Retail bias here is similar to that of the Dow at a heavy short 70%, while institutional bias is far more modest at a majority long 60% than the Dow’s extreme long bias of 86%.
![NASDAQ](http://a.c-dn.net/c/content/dam/publicsites/igcom/Dubai/images/Monte/July-2019/31-07-2019/NASDAQ.JPG/jcr:content/renditions/original-size.webp)
DAX: Sentiment shift and technical overview shift following ECB inaction
European equities finished more heavily in the red compared to their US counterparts, and Asia is down as of this morning as US-China trade talks resume with no announcement yet to lift investor spirits. Meanwhile, the DAX’s plummet wasn’t just noteworthy on the technical front as ECB inaction undoes much of the gains that were made based on expected monetary easing, but also in terms of sentiment, with retail bias shifting from a previous majority short 61% to a now heavy long 68% on short profit-taking. But don’t think US indices are out of the park just yet, as the Fed is up next and if it disappoints, we could see similar if not more sizeable drops in US indices.
![DAX](http://a.c-dn.net/c/content/dam/publicsites/igcom/Dubai/images/Monte/July-2019/31-07-2019/DAX.JPG/jcr:content/renditions/original-size.webp)
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.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/Rebrand/Article_banners/Indices_global_component_banner.jpg/jcr:content/renditions/original-size.webp)
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.