Fresh record highs for Dow, Nasdaq and DAX

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Dow technical analysis, overview, strategies, and levels

Fresh record high for Wall Street in a session where financials led, and ahead of earnings from the big banks starting with (components) Goldman Sachs BDC Inc and JP Morgan Private Equity Ltd. They were relative outperformers amongst the Dow's components yesterday, though bested by Walt Disney Co (All Sessions) - JPMorgan keeps it as a top pick. There were plenty in the red by the close however, losses limited with Cisco Systems Inc (All Sessions) and salesforce.com Inc in the bottom. There's been a lack of US data to go on with the attention more on Federal Bank speak and auctions, and while there's more of that tonight, there's also the closely watched CPI reading expected to remain high but drop from the previous 5% figure. The technical overview in this time frame is also a stalling bull trend, where conformist strategies have been tested on multiple occasions.

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IG client* and CoT** sentiment for the Dow

Retail sentiment is a heavy sell and unchanged since yesterday, in need of a move back down to unwind.

Dow chart with retail and institutional sentiment

Nasdaq technical analysis, overview, strategies, and levels

The US Tech 100 wasn't alone in posting a fresh record high, though tech as a sector didn't enjoy the strongest gains, communication faring much better. The moves were within weekly levels on the small consistent gain, and should that persist it'll be tough to get prices moving beyond key levels (since the action will mostly be between the relative starting point and the first resistance level). Tesla Inc and Moderna Inc were relative outperformers amongst its components, on the other end Atlassian Corp PLC and Biogen Idec Inc underperformed. The focus is primarily on earnings and the big banks, which include components in the Dow, and for this index PepsiCo Inc and Fastenal Co expected to release their figures next. There's also items out of the US that could influence the bond market and yields.

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IG client* and CoT** sentiment for Nasdaq

As for sentiment, it's heavy sell like the other indices making fresh highs, though dropping here from 69% to 68%.

Nasdaq chart with retail and institutional sentiment

DAX technical analysis, overview, strategies, and levels

Fresh record high for the Germany 40 even if it hasn't reached weekly levels just yet, and where technicals in this time frame aren't as bullish as that of the weekly, prices breaching the upper end of the band. The technical overview for the weekly is a stalling bull trend on what has been a lack of consistent and significant upside follow-through, and while the same could be said for this time frame as well, short-term intraday drops have been stopping out fresh longs, testing intraday traders and meaning breakouts can't be ruled out even if prices are moving back towards a mean interday. Delivery Hero SE, Volkswagen AG (Ord), and RWE AG were the components outperforming, a handful in the red with MTU Aero Engines AG underperforming. German WPI beat estimates with 1.5% month-on-month even if it softened from its previous 1.7% reading, and up next its final CPI figures.

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IG client* sentiment for the DAX

In sentiment, it's a hard hit for retail traders now holding extreme sell bias at 81%.

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 for the outer circle. Inner circle is from the previous trading day.}

^{**CoT sentiment taken from the CFTC’s Commitment of Traders report, outer circle is latest report released on Friday with the positions as of last Tuesday, inner circle from the report prior.}