Dow and Nasdaq move back towards key resistance levels

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Dow technical analysis, overview, strategies, and levels

Although prices finished higher and above its previous first resistance level, there was little follow-through beyond it which meant conformist buy-breakout strategies enjoyed little in what has been a continuous test despite prices near record highs. Nearly all sectors finished in the green, and component performance put IBM Corp (All Sessions) and 3M Co (All Sessions) on top while only a handful finished in the red with losses led by Walt Disney Co (All Sessions).

In earnings amongst its components, Amgen Inc beat estimates on earnings and revenue with its guidance reduced, its share price retracing a bit in after-hours. US data showed factory orders impress, economic optimism according to TIPP drop, and vehicle sales register its third consecutive decline.

Services data out of both ISM and Markit Ltd are tonight preceded by ADP's non-farm estimate, and in Fed speak we've got another voting member after yesterday's cautious comments out of Bowman and Clarida.

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IG client* and CoT** sentiment for the Dow

Dow chart with retail and institutional sentiment

Nasdaq technical analysis, overview, strategies, and levels

It was energy, health and industrials outperforming yesterday, though tech did manage to finish in the green, taking the tech-heavy index to a higher finish in a move that aided conformist buy-on-reversals off of its previous first support level holding, prices just shy of its previous first resistance level, but in the process above the last of its main short-term moving averages in this time frame.

Moderna Inc (FDA grants Fast Track designation for its RSV vaccine), 6159-JP (Monday's buyback shift and dividend announcement), and Amdocs Ltd were the components outperforming and enjoying the most gains, while Chinese shares like NetEase Inc, Trip.com Group Limited - ADR, and Pinduoduo Inc were in retreat.

Though the target was non-component Tencent Holdings Ltd and hit gaming stocks including components' Activision Blizzard Inc, earnings beat helping it recover in after-hours, and Electronic Arts Inc, the latter one of a handful of components releasing their earnings figures today.

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IG client* and CoT** sentiment for Nasdaq

Nasdaq chart with retail and institutional sentiment

DAX technical analysis, overview, strategies, and levels

Relative lack of gains for the DAX with the movement within its previous daily levels, and just shy of a close above the last of its main long-term moving averages, the 50-day MA.

Fresenius Medical Care AG & Co. KGaA recovered and was an outperformer, losses on the other end heaviest for Bayerische Motoren Werke AG - strong earnings with profit forecast for the year raised but warning on more volatility for the group in the second-half due to raw materials prices and semiconductor shortages.

With MTU Aero Engines AG a relative underperformer. In terms of German data, we've got services PMI today with expectations for an expansionary 62.2 reading.

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IG client* sentiment for the DAX

As for trader sentiment, retail traders remain majority short and price gains have raised from 58% to 61%.

DAX chart with retail 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 for the outer circle. Inner circle is from the previous trading day.}

^{**CoT sentiment taken from the CFTC’s Commitment of Traders report, outer circle is latest report released on Friday with the positions as of last Tuesday, inner circle from the report prior.}