Vaccine hopes and lockdown easing takes Dow, Nasdaq, and DAX higher

Dow Technical analysis, overview, strategies, and levels

With vaccine hopes and lockdown restrictions easing, yesterday was a big risk-on move which translated into a surge in the Dow to aid conformist buy breakout strategies in line with its bull trend technical overview that had been stalling heavily at these levels, its price now above all its main short-term moving averages. All its components finished in the green save for a small decline by Merck, the outperformer Boeing with a near 13% gain in its share price. Amongst US sectors that all finished heavily in the green, the gains were largest for energy and industrials, and smallest for health care and consumer staples. We've got the Federal Reserve's Chair Powell testifying later today, and in earnings we get Walmart and Home Depot's figures (there will also be housing data).

IG client* and CoT sentiment for the Dow

In sentiment, retail shorts haven't let go, the bias rising to a heavy short 71%.

Dow chart with retail and institutional sentiment

Nasdaq Technical analysis, overview, strategies, and levels

Although Nasdaq's price moved significantly higher to finish above its short-term resistance level, it hasn't reached its Weekly 1st Resistance level just yet and it underperformed compared to the Dow. Moderna's share price surged after it reported positive initial Covid-19 vaccine results, even if the earliest it will be available would likely be 2021. Amongst its remaining components, travel site Expedia and hotel chain operator Marriott finally had their chance to outperform with roughly 18% gains in both of their share prices, but there were a handful of underperformers including Gilead, Vertex, and Regeneron all near the bottom. Netease will be releasing its earnings today, but expect the index to move in line with risk appetite on the latest news.

IG client* and CoT sentiment for Nasdaq

In sentiment, the lack of a significant gain in price means short bias has risen only a few notches to 66%, below the Dow's 71%.

Nasdaq chart with retail and institutional sentiment

DAX Technical analysis, overview, strategies, and levels

The DAX finally lived up to expectations of volatility on its Weekly technical overview, its price breaching the Weekly 1st and 2nd Resistance levels with ease and taking its priced above all its short-term moving averages on the daily chart to aid conformist buy breakout strategies in line with its Weekly volatile technical overview, and keep its Daily technical overview of a stalling bull trend intact. All its components finished in the green, the gains largest for airplane engine maker MTU Aero Engines rising more than 15%, and Wirecard one again volatile with a 9% increase.

IG client* sentiment for the DAX

Given range-trading is usually the highest here, retail sentiment has surged from the start of the week's slight majority short 51% to a now heavy short 69%.

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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