Nasdaq posts a fresh record high while Dow and DAX finish in the green

Dow Technical analysis, overview, strategies, and levels

Although coronavirus figures have failed to subside, the Dow's movement resulted in a green finish with its components’ Microsoft, Boeing and Cisco (set to release its earnings tomorrow) outperforming and ExxonMobil at the bottom contracting. Nearly all US sectors were in the green led by the tech sector, and where energy was the only sector contracting heavily in the red. While there are a few items this evening in terms of data that includes JOLTS and mortgage delinquencies, US Federal Reserve (Fed) Chair Powell's testimony will likely be more important as any continuity in the current indirect easing policy the US central bank has thus far resulted in stronger equities and increased risk-taking.

IG client^* and CoT sentiment for Dow

Retail bias here remains heavy short rising a notch to 69%, below that of the Nasdaq given the lack of outperformance in this index compared to the tech index.

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

The Nasdaq outperformed once again compared to the Dow as the tech sector was the outperformer, and in turning taking the tech index to a fresh record high as its technical overview remains a bull trend that is only stalling in the sense of a lack of buy breakout opportunities on most days, but where eventual follow through has thus far been in favor of buy traders. AMD and Nvidia outperformed amongst its components and Tesla was also in the green, and while there were plenty of underperformers they didn’t fare as badly offering minimal contractions.

IG client^* and CoT sentiment for Nasdaq

In sentiment, while retail bias is still heavy short it hasn’t risen, dropping 3% instead to 70% but no doubt squeezed as those shorts have all been initiated at lower price levels and continue to await some form of retracement to unwind without a loss.

Nasdaq chart with retail and institutional sentiment

DAX Technical analysis, overview, strategies, and levels

As with both Dow and Nasdaq, the DAX too finished the session higher and is up early this morning making a move towards its 1st Resistance level, with any risk-on moves aiding the index even if it runs contrary to coronavirus fears and figures that have failed to subside just yet. Amongst its components, once again auto shares were the underperformers in the red alongside airliner Lufthansa, as investors re-assess stocks exposed to the Chinese market as well as its supply chain. Its price is above all its main moving averages both short and long, but in the daily overview its remaining technical indicators are neutral.

IG client^* and CoT sentiment for DAX

In sentiment, there’s been no change on the retail bias front, stuck near extreme short levels at 77%.

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%.

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.