Dow Jones, DAX 30, S&P 500 Outlook – Will Prices Further Stabilize

Dow Jones, DAX 30, S&P 500 Outlook

  • Germany’s DAX 30 face diverging price outlook
  • S&P 500 index might see the same dynamics unfold
  • IG Client Sentiment (IGCS) Dow Jones Industrial Might Stabilize

DOW JONES MIXED SENTIMENT

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The IGCS measure shows that the retail traders are 42% net long Dow Jones. The downtrend exposure has reduced by about 8.81% and 20.75% over a daily and weekly basis. The combination of the most recent sentiment and the latest changes provides a mixed trade bias.

DOW JONES FUTURES TECHNICAL OUTLOOK

DOW JONES CHART

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It’s highly likely that the Dow Jones futures have stabilized most recently after the top under current peaks in 2020. On the other hand, the 50-day SMA seems to have started focusing on the uptrend after the prices failed to nudge below the 27312 to the 27624-inflection territory. A closer over 28197 might ignite more gains.

S&P 500 INDEX MIXED SENTIMENT

The IGCS measure shows that about 38% of the retail traders are net-long S&P 500 index. The uptrend exposure has dropped 14.79% whereas the downtrend bets have climbed 13.05 percent over a weekly basis. Integration of the recent changes and the current sentiment offers an additional mixed trading bias.

S&P 500 FUNDAMENTAL ANALYSIS

After the top at 3577 Fibonacci (61.8% extension), the S&P 500 futures have stabilized. The prices had been caught between the 3337 and 3397 inflection zone. Also, the 50-day Simple Moving Average held. A nudge over 3397 might reinstate this focus to the uptrend. The daily close below the 50-day SMA might risk opening doors to a new reversal.

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DAX BULLISH SENTIMENT OUTLOOK

The IGCS measure shows that approximately 39% of the retail investors are net-long DAX 30. The uptrend exposure rose 31.24% and 4.82% on a weekly and daily basis respectively. The integration of the recent changes and current sentiment provides a powerful bullish contrarian trade bias.

DAX 30 TECHNICAL OUTLOOK

The DAX 30 futures might be at the risk of the broader rebound with the prices trading in a bearish rising triangle pattern. Also, this follows the continued Relative Strength index divergence, which signals the fading uptrend momentum. A daily close below the wedge of the floor might open doors to a new reversal.

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