Dow and Nasdaq retrace slightly off the highs while DAX finishes in the green
All three technical overviews a bull trend but US indices reliant on optimism on the trade war front and for the DAX ongoing central bank easing.
Dow Technical analysis, overview, strategies, and levels
The energy sector may have outperformed earlier in the week, but yesterday it was at the bottom with the outperforming sectors being health care and financials. Its bull trend has stalled at the highs once again, as it has been a continuous case of limited intraday (and many times intraweek) gains making buy breakout strategies difficult for short-term profit-taking.
| Current 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 | 27860 |
| 2nd Resistance | 27772 |
| S/L for 1st Resistance | 27683 |
| 1st Resistance | 27595 |
| Relative Starting Point | 27419 |
| 1st Support | 27242 |
| S/L for 1st Support | 27154 |
| 2nd Support | 27065 |
| S/L for 2nd Support | 26977 |
IG client and CoT sentiment for Dow
Retail bias remains at extreme short levels and unchanged at 78%, nearly opposite extreme long levels of 83%.
Dow chart with retail and institutional sentiment
Nasdaq Technical analysis, overview, strategies, and levels
While Tesla may have outperformed yesterday, there were plenty of other components in the red, and giving the tech index a slightly lower finish for the session not far off from record highs posted earlier in the week.
| Current Technical Overview | Bull Trend |
| 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 | 8369 |
| 2nd Resistance | 8336 |
| S/L for 1st Resistance | 8303 |
| 1st Resistance | 8270 |
| Relative Starting Point | 8203 |
| 1st Support | 8136 |
| S/L for 1st Support | 8103 |
| 2nd Support | 8070 |
| S/L for 2nd Support | 8037 |
IG client and CoT sentiment for Nasdaq
That brief intraday dip however did give a chance for fresh shorts to exit and taking heavy short bias down 2% to 76%, but the bulk of those shorts have been initiated at lower price levels and far more retracement will be needed, and meaning that they’ll still be prone to a squeeze should price make a move back up.
Nasdaq chart with retail and institutional sentiment
Dax Technical analysis, overview, strategies, and levels
Unlike US indices registering small declines yesterday, a finish higher and a brief intraday high as well for the German index, and with German data set for release early today. Thus far, all its main technical indicators continue to flash green despite uncertainty for the manufacturing powerhouse and for the bloc in general. But bad news for the German economy doesn’t always translate into bad news for equities, as worsening data means prolonged ECB (European Central Bank) easing, and hence forcing more money into riskier assets.
| Current Technical Overview | Bull Trend |
| 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 | 13395 |
| 2nd Resistance | 13348 |
| S/L for 1st Resistance | 13301 |
| 1st Resistance | 1354 |
| Relative Starting Point | 13160 |
| 1st Support | 13066 |
| S/L for 1st Support | 13019 |
| 2nd Support | 12972 |
| S/L for 2nd Support | 12925 |
IG client and CoT sentiment for DAX
DAX chart with retail and institutional sentiment
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