Nasdaq finishes up again, Dow and DAX drop

Dow Technical analysis, overview, strategies, and levels

The Dow was in for a red finish yesterday, testing its stalling bull trend technical overview that has failed to see significant follow through thus far but where it could easily see more upside potential, especially following the New York Fed's announcement yesterday that it would start buying corporate bond exchange-traded funds today, most of the purchases with exposure to investment-grade corporate bonds but some to high-yield as well. Amongst its components, while Pfizer was on top with Apple and Microsoft outperforming, they were in the minority in terms of a green finish. Plenty were in the red, the bottom two being American Express and Boeing. US CPI (Consumer Price Index) figures will be released this evening, but there's also trade worries in the background.

IG client* and CoT sentiment for the Dow

Retail sentiment has dropped 7% on yesterday's drop, as range-trading gets heavier within these levels.

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

Unlike the Dow which settled on a red finish, the Nasdaq enjoyed another consecutive day finishing in the green, keeping its bull trend technical overview intact and where it could easily see higher highs. Amongst its components, Vertex Pharmaceuticals outperformed following news regarding its gene-editing drug, and Gilead Sciences and Alexion Pharmaceuticals were also big gainers in a positive day for health care stocks. In the red at the bottom was hotel-chain operator Marriott following its earnings release which missed forecasts, no surprise given its exposure to the current coronavirus storm and the lockdown as a result that has hampered tourism and travel.

IG client* and CoT sentiment for Nasdaq

In sentiment, unlike fresh Dow retail shorts who had the opportunity to take profit, the rise here has witnessed majority short bias increase further into heavy territory, up at 72% as of this morning.

Nasdaq chart with retail and institutional sentiment

DAX Technical analysis, overview, strategies, and levels

The Daily technical overview of a bull trend continues to get tested by small intraday moves, stalling at these levels on a lack of follow through with the German DAX finishing lower yesterday, and suffering a move lower this morning as Asian equities take a slight hit following news and data out of China. Amongst the DAX's components, Wirecard had its turn to surge and beat the rest likely on news that it had appointed a new chief compliance officer following KPMG's audit. But most of the rest finished in the red, losses heaviest for HeidelbergCement and Henkel.

IG client* sentiment for the DAX

Retail traders aren't complaining when there's retracement in this index, giving fresh range-trading shorts a chance to close out and reduce majority short sentiment from 62% to 58%.

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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