Dow, Nasdaq, and DAX suffer another red session

Dow Technical analysis, overview, strategies, and levels

The Dow was an underperformer on Tuesday following its plummet that hurt its technical overview whereby all its key technical indicators are now flashing red and combined with a trending ADX (Average Directional Index), and it underperformed once again yesterday compared to the Nasdaq. Most of its components were in the red, with Disney at the bottom following its CEO stepping down, and energy shares the second-worst performers given the oil price plummet. In terms of US sector performance, all were in the red save for tech, with energy suffering the biggest losses. The increased volatility befitting its current technical overview has meant that breakout opportunities have occurred more frequently. In US data, there was little on offer with new home sales posting its highest figure since 2007, and today's economic calendar will offer more with durables and preliminary US GDP (Gross Domestic Product).

IG client^* and CoT sentiment for Dow

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

As with the Dow, the Nasdaq was in for another red session, though overall the tech sector managed to finish in the green for the US. Amongst its components while most were in the red lead by airline and travel stocks at the very bottom, there were a few outperformers in the green that included Netflix and Nvidia, as investors gauge which stocks may outperform when households hunker down. Its technical overview here remains volatile, even if many of the main indicators aren't showing the same negative technical bias the Dow, which has been hurt more by the recent risk-off moves. Breakout opportunities twice to the downside were in line with its conformist overview and offered plenty, but a sell on reversal also panned out as a breakout opportunities to the upside were limited.

IG client^* and CoT sentiment for Nasdaq

Nasdaq chart with retail and institutional sentiment

DAX Technical analysis, overview, strategies, and levels

Risk-related moves continue to dominate indices' movement, with the DAX also in for a red session alongside the Dow and Nasdaq. Most of its components were in the red with Lufthansa near the bottom as airline stocks got hit, but auto shares were in the green for a change. Germany’s Health Minister said the country was on path for a coronavirus epidemic and could no longer trace all of its cases, in what will likely translate into issues for the manufacturing powerhouse and the supply chains it contributes to. In terms of data, while there are a couple items out of the Eurozone, German preliminary CPI (Consumer Price Index) figures will be released tomorrow throughout the day from different regions and expected to show a slight 0.3% expansion following the month before's 0.6% contraction. There will also be employment data, with a 3K change expected and its unemployment rate expected to remain unchanged at 5%.

IG client^* and CoT sentiment for DAX

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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