S&P 500, Dow Jones, DAX 30, Technical Analysis, Retailer Positioning – Call Points
- Retail investors continue to increase their stakes S&P 500, Dow Jones, DAX 30
- This is represented through the IG Client Sentiment, which is usually the opposite
- Check out a recording of this week’s webinar to learn more about how this tool works
Looking at the IG Client Sentiment (IGCS), retailers appear to be gaining ground in major stock indices such as the S&P 500, Dow Jones and DAX 30. IGCS is usually the opposite, especially in trend markets. If investors continue to buy on recent pricing, there is a risk that there may be a negative place for these indices. For more information on using this tool in your own trading strategy, check out this week’s webinar recording I held.
Outlook for S&P 500 sentiment – tough
The IGCS gauge means that about 46% of retailers have S&P 500 net lengths. Positions have risen by 10.88% and 31.80% per day and week, respectively. We usually take the opposite view of the feelings of the crowd. As most traders are still short, this indicates that prices may rise. Recent positioning changes, however, are tilting the S&P 500’s outlook.
S&P 500 futures refused to test, which seems tough Rising wedge whose roots are from March. As such, there may be a greater likelihood of a bounce, which could send the index back to the wedge ceiling, continuing the broader upward trend. On the other hand, daily closing under the floor can open the door for testing a 100-day moving average. Carefully observe the turning zone of key 4347 – 4383.
Daily schedule of S&P 500 futures
Dow Jones mood prospects – tough
The IGCS gauge means that about 58% of retail businesses are Dow Jones net lengths. Upward exposure has increased by 17.64% and 9.25% per day and per week, respectively. The fact that most traders are now hinting at net-long hints that prices may continue to fall. Recent adjustments in retailers’ positioning underline the outlook further.
Dow Jones futures look increasingly vulnerable as materials become lower after prices have fallen on a rising wedge chart. A daily closing under immediate support at 34494 would reveal a low of 33623 in July as the 200-day SMA is slowly approaching. The latter may restore the dominant focus upwards, but reaching the line will lead to a decrease of more than 4%. Continuing the upward trend, the focus would be on hurdle 35547, the highest level ever.
Dow Jones futures daily schedule
DAX 30 Sentiment Outlook – karm
The IGCS gauge means that about 43% of retailers have DAX 30 net lengths. Exposure has increased daily and weekly by 1.68% and 11.51%, respectively. As most traders are still short, the IGCS suggests that prices may rise. However, recent changes in the positioning of retailers warn that prices may fall.
The DAX 30 has undeniably been consolidated since June. Although increasing support from December 2020 onwards appears to be driving the index upwards. Nevertheless, prices are once again at the top of the trend line. From here, the DAX can look at the all-time peak of August, which is only shy (16042). Otherwise, the settlement under increasing support will reveal a 200-day SEA, which may once again focus on the reverse path.
DAX 30 daily schedule
* From September 14, IG customer mood tables and positioning data will be usedth Report
– Written by Daniel Dubrovsky, Strategist For DailyFX.com
Use the or comments section below to contact Daniel @ddubrovskyFX Twitter