Dow, Nasdaq and DAX pointing higher on bullish Asian session

Dow Technical analysis, overview, strategies, and levels

The Dow managed to finish the week higher largely thanks to gains made last Monday, its price breaching last week's Weekly 1^st Resistance level offering plenty before an eventual partial retracement at the end of the week as its bull trend technical overview continues to stall, more so on the daily chart where daily technicals are more neutral but combined with an ongoing trending ADX (Average Directional Movement Index). By Thursday's close outperformers included health companies' Walgreens and Pfizer, with retailer Walmart and wholesaler Costco amongst the handful in the red. Materials and energy outperformed as a sector, with only defensive real estate contracting slightly. We've got ISM's non-manufacturing PMI (Purchasing Managers Index) later today in what will be a week of mostly low to mid-impacting US data.

IG client^* and CoT sentiment for Dow

In sentiment, retail bias starts off the week in majority short territory after shifting from majority long last week.

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

It was a strong week for the tech-heavy Nasdaq, which outperformed to register large gains and a fresh record close. By Thursday's end, Tesla was the outperformer registering big percentage gains to take its price to fresh record highs, its latest second-quarter deliveries easily beating expectations though lacking details on geography and model breakdown. Amongst the rest, pharmaceuticals' Incyte and Walgreens enjoyed sizeable increases, with Netflix and Facebook in the very bottom. Conformist buy breakouts outperformed on the Weekly with a breach of its Weekly 1^st Resistance but was tested on the Daily on what has been a lack of intraday follow through beyond its key pivot points and its average daily ranges.

IG client^* and CoT sentiment for Nasdaq

With shorts stuck and longs getting ever more enticed into unwinding, majority short bias has gotten far heavier, surging from 55% at the start of last week to a heavy 73% at the start of this week.

Nasdaq chart with retail and institutional sentiment

DAX Technical analysis, overview, strategies, and levels

Last week's decision by the German parliament to back the ECB's (European Central Bank) bond-purchasing program aided the DAX in finishing the week significantly higher than where it started, and aiding conformist buy breakout opportunities on both the daily and weekly. Amongst its components, Wirecard was once again the most volatile, and where Henkel and Beiersdorf underperformed. In economic data, services PMI was better than expected on Friday even if it was still contracting. We've got German factory orders shortly that is expected to show healthy expansion following three readings of contraction, the latter two massive. The attention this morning is on the Asian session where Chinese blue chips are hitting a five-year peak, and translating into improved risk appetite.

IG client^* and CoT sentiment for DAX

The price increase here has translated into much heavier majority sell bias, jumping from a slight 51% at the start of last week to 67% at the start of this week.

DAX chart with retail and institutional 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.

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