Nasdaq oscillates ahead of Big Tech earnings

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Dow technical analysis, overview, strategies, and levels

Fresh record high for the Dow after a brief intraday dip, and keeping a few of its technical boxes flashing green in this time frame, though not as much as when it set records months ago given there was more uninterrupted bullish moves at the time. Wall Street, Intel Corporation, and Chevron Corp (All Sessions) were the outperforming components, the minority that were in the red suffering minimal losses with Amgen Inc in the very bottom. When it comes to earnings amongst its components, Apple Inc, Microsoft Corp (All Sessions), Visa Inc (All Sessions), and 3M Co (All Sessions) are up next. US data yesterday showed new home sales a clear miss with a drop to lows unseen since June, its previous reading revised lower as well. Housing price data, durables, Richmond's manufacturing, and CB's consumer confidence are on offer tonight before attention shifts to tomorrow's Federal Open Market Committee event.

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IG client* and CoT** sentiment for the Dow

As for sentiment, extreme sell bias amongst retail traders has moved a notch higher to 79%.

Dow chart with retail and institutional sentiment

Nasdaq technical analysis, overview, strategies, and levels

It was a mixed bag in terms of sector performance yesterday, tech an underperformer while communication rose, and a fresh record high for this index but where the gains were small and it didn't outperform compared to Wall Street and the US 500. It came as no surprise that once again Chinese companies were in the very bottom, NetEase Inc down by double-digit percentages, Pinduoduo Inc, JD.com Inc (All Sessions), Trip.com Group Limited - ADR and Baidu Inc - ADR (All Sessions) the usual suspects suffering heavily. At the top, Zoom Video Communications Inc, Intel Corporation and Marriott International Inc, and where Tesla Motors Inc (All Sessions) relatively outperformed following its earnings that beat estimates on both the revenue and earnings front, net income above $1 billion for the first time, a smaller portion of revenue from regulatory credits and a boost in margins. Bigger tech giants are up next, with Alphabet Inc - C (All Sessions) (Google), Apple Inc, and Microsoft expected to release their figures today, Amdocs Ltd, Fiserv Inc, Mondelez International Inc, Maxim Integrated Products Inc, PACCAR Inc, Starbucks Corp and Sirius Minerals PLC components also announcing.

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IG client* and CoT** sentiment for Nasdaq

Nasdaq chart with retail and institutional sentiment

DAX technical analysis, overview, strategies, and levels

The movement remains relatively high for this index, even if short-term reversals outperformed on yesterday's recover off the lows. And while the technical overview is a stalling bull trend for this index (as well as the rest) when it comes to the weekly overview, the intraday tests in the short-term on the daily going beyond key levels on most days as of late and meaning breakout strategies can't be ruled out. A red finish for this index opposite most of the rest with most of its components losing and losses heaviest for Vonovia SE, Deutsche Boerse AG, and Adidas AG, gains on the other end largest for Deutsche Wohnen SE and MTU Aero Engines AG. German economic data showed ifo's readings a miss for all three: business climate and expectations worse than previous while current assessment failed to match expectations.

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IG client* sentiment for the DAX

As for yesterday’s pullback, retail traders will be needing more of that to unwind more of their heavy sell bias. Of the six indices, Wall Street, US Tech 100, US 500, FTSE 100, Germany 40, and Australia 200, they remain majority buy only in the FTSE (even if it's dropped to 68%), majority sell the rest and at the extremes for the Dow and ASX 200.

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.}