Dow outperforms, Nasdaq hits all-time high, and DAX edges higher

Dow Technical analysis, overview, strategies, and levels

Although the Dow didn't reach an all-time high like the Nasdaq nor undo this year's losses as was the case with the S&P 500, it did outperform with a bigger percentage gain to keep its bull trend technical overview intact where (on the daily) all its main technical indicators are flashing green, and brushing off the National Bureau of Economic Research’s US recession announcement. Amongst its components, Boeing outperformed with another double digit percentage gain, the handful finishing in the red including Intel and UnitedHealth. All US sectors finished in the green, the gains largest for energy and utility while smallest for materials and tech.

IG client^* and CoT sentiment for Dow

With shorts getting tested, majority short retail bias has dropped down to 66% from the start of the week's 69%, below that of larger speculative traders according to last Friday's CoT (Commitment of Traders) report.

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

It was an all-time high for the Nasdaq, but the gains here were relatively limiting in what has been mostly a lack of intraday momentum for the tech-heavy index and in turn doing little to aid pivot point action and momentum based traders. In terms of its components, Tesla outperformed closing at a record high and topping $900 following data showing Chinese sales rising in May for the first time since June of last year. There were plenty in the red including NetEase as it priced its upcoming secondary listing in Hong Kong, and Lam Research.

IG client^* and CoT sentiment for Nasdaq

Here too, retail short bias is dropping as a percentage of the total as fresh longs initiate and plenty of shorts get stopped out, the bias dropping from 70% to 64%.

Nasdaq chart with retail and institutional sentiment

DAX Technical analysis, overview, strategies, and levels

European equities weren't in for big gains on Monday like that of their US counterparts, but for the German DAX it did register a slightly higher finish. In terms of data, German industrial production showed a larger than expected contraction of 17.9% with its previous revised higher to -8.9%, and up next we'll get German trade data expected to show an ongoing surplus. Amongst the DAX's components, airliner Lufthansa was the outperformer followed by Deutsche Bank, but there were plenty closing in the red including adidas and Vonovia. The technicals remain bullish on both the daily and weekly for this index, with its price above all its main moving averages for both.

IG client^* and CoT sentiment for DAX

From a trader standpoint, range-trading shorts have continued to get squeezed on the move higher in this index, the latest nudge taking heavy short bias a few notches lower to 68%, and where those shorts have been initiating at far lower price levels.

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.

Be sure to request IG’s Weekly & Daily Market Report when you open an account with IG Dubai and get access to the full information on the FX majors, commodities, indices, and Bitcoin.