Dow, Nasdaq and DAX rise after gapping lower
CoT bias shifts in Nasdaq to majority long, speculators remain majority short Dow and S&P 500.
Dow Technical analysis, overview, strategies, and levels
The technical overview remains bullish for the Dow on the Weekly and Daily even if it's 1st Support level was tested multiple times late last week, and the index outperformed against the Nasdaq for the week. US data was tested on multiple fronts including preliminary GDP (Gross Domestic Product), sentiment, trade, and spending. Durables and income were better than expected, and attention will shift to ISM's manufacturing PMI (Purchasing Managers Index) later today. Amongst its components, there were quite a few finishing Friday in the green with Cisco on top after it announced its intent to acquire a cloud company. Financials was hardest hit as a sector, and it was health and tech that outperformed on Friday.
IG client* and CoT sentiment for the Dow
Retail shorts are mostly stuck on the bullish move higher, while CoT (Commitment of Traders) short bias has dropped on an increase in Dow consolidated longs by 754 lots.
Dow chart with retail and institutional sentiment
Nasdaq Technical analysis, overview, strategies, and levels
US-China tensions and an executive order regarding social media companies meant that tech shares didn't outperform for the week and keeping the Nasdaq's gains relatively limiting, its price finishing just above last week's 1st Resistance level. Pharmaceuticals including Regeneron and Alexion were outperformers alongside Cisco and Nvidia, though there were plenty finishing in the red including hotel chain Marriott contracting the most. The technical overview in the short-term and long-term remains bullish, with its price above all its main moving averages, a positive DMI (Directional Movement Index), and a trending ADX (Average Directional Index).
IG client* and CoT sentiment for Nasdaq
In sentiment, there's been a shift to majority long amongst CoT speculators from a previous majority short 52% bias on an increase in Nasdaq consolidated longs by 1,818 lots outdoing a smaller increase in shorts by 139 lots.
Nasdaq chart with retail and institutional sentiment
DAX Technical analysis, overview, strategies, and levels
There was slight retracement late last week, and in turn most of its components were underperforming on Friday with airliner Lufthansa suffering the biggest losses and MTU Aero Engines not that far off. Only a few finished higher, the gains insignificant. The retracement off the lows offered a buy-on-reversal opportunity conforming to its current daily bull trend technical overview, while on the weekly its price is just below its key long-term moving averages (the 50, 100, and 200-week MA's). German data on Friday showed import prices contract and retail sales in the red but dropping at a better than expected pace avoiding double-digit losses, and we've got a bank holiday today.
IG client* sentiment for the DAX
In sentiment, retail shorts are mostly stuck given they've initiated at lower price levels, with only some managing to get out to take the heavy short bias only a notch lower to 68%.
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.
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