Record high for the Nasdaq, Dow and DAX futures moving higher
Tech sector sends the tech-heavy index to a record finish, retail bias moves further into the sell side.
Dow technical analysis, overview, strategies, and levels
Underperformance for the Wall Street, especially when viewed in light of fresh record highs for the US 500 and US Tech 100, with tech outperforming as a sector and most of the rest conflicting. There wasn't a play on its weekly levels just yet, though would have triggered daily levels as its overview stalls heavily in this time frame, and showing far less positive bias than the weekly.
Tech on top meant salesforce.com Inc, Apple Inc, Microsoft Corp (All Sessions), and Intel Corp (All Sessions) were the outperforming components, most of the rest in the red with losses heaviest for JP Morgan Private Equity Ltd (CEO saying they're holding $500bn of cash on expectations "inflation will be more than transitory", net interest income as a result to drop significantly). There wasn't any US data to go on yesterday, but we've got plenty of it today and expected to be impacting with focus on retail estimated to contract, and PPI with a potential 6.3% year-on-year increase.
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IG client* and CoT** sentiment for the Dow
Retail bias shifted to majority buy last week, and has increased since to 55%.
Dow chart with retail and institutional sentiment
Nasdaq technical analysis, overview, strategies, and levels
Outperformance for the tech and communication sectors (and despite an uptick in yields), and in turn a boost for the US Tech 100 to take it to a fresh record high in a session that went beyond daily levels, though yet to reach weekly levels posted at the start of the week. The overview continues to show signs of a breakout, a part of which we've gotten thus far, otherwise a stalling bull trend where absent consistent momentum-based gains could test breakout strategies on a potential lack of gains beyond key levels that we've seen prior.
Marvell Technology Group Ltd, Adobe Systems Inc (All Sessions) (ahead of its earnings later this week), MercadoLibre Inc, and Apple Inc outperformed amongst its components, losses for Moderna (suffering significantly with non-component BioNTech SE (All Sessions) hurt even more after Novavax Inc (All Sessions)'s strong vaccine results, to apply for emergency use authorization), eBay Inc (All Sessions), and Walgreens Boots Alliance the minority in the red.
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IG client* and CoT** sentiment for Nasdaq
In trader sentiment, its majority short for retail traders and rising.
Nasdaq chart with retail and institutional sentiment
DAX technical analysis, overview, strategies, and levels
Higher highs for the Germany 40 that couldn't stick opting to end the session a touch lower, though as of this morning futures also pointing higher and nearer to the upper end of its short-term daily bull trend channel, and keeping a couple of its technical indicators flashing green and a technical overview that's a stalling bull trend. Component performance put Siemens Energy, Deutsche Boerse AG, and SAP AG (DE) on top, on the other end losses for Covestro AG, Volkswagen AG (Ord), and CBPX-US. It's a week light on German data, though we get final CPI figures today and PPI figures on Friday, the former expected to show 2.5% year-on-year growth.
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IG client* sentiment for the DAX
As for sentiment, retail sell bias has dropped from 76% to 74%, any further oscillations or retracement off the highs a chance for range-trading shorts to at least partially unwind, a clear bulk of them initiated at lower prices levels.
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.
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