Dow Jones, S&P 500, Technical Evaluation, Retail Dealer Positioning – Speaking Factors

  • IG Shopper Sentiment warns that the Dow Jones and S&P 500 could fall
  • Upside momentum appears to be fading, elevating the danger of a flip decrease
  • Try the webinar recording for an in-depth breakdown of IGCS
How to Use IG Client Sentiment in Your Trading

How to Use IG Client Sentiment in Your Trading

Beneficial by Daniel Dubrovsky

How is IG Shopper Sentiment a contrarian indicator?

On this week’s webinar, I coated the outlook for equities just like the Dow Jones and S&P 500 utilizing IG Shopper Sentiment (IGCS). IGCS is often a contrarian indicator. For a extra in-depth evaluation of the place these property could go, together with protection of fundamentals, try the recording of the session above.

Dow Jones Sentiment Outlook – Bearish

The IGCS gauge implies that about 31% of retail merchants are internet lengthy the Dow Jones. Draw back publicity has decreased by 13.02% and 11.05% over a day by day and weekly foundation respectively. Current modifications in sentiment warn that the present worth development could quickly reverse decrease regardless of the very fact merchants stay internetquick.

Dow Jones, S&P 500 Forecast: Retail Trader Signals Hint of a Turn Lower

Technical Evaluation

Damaging RSI divergence reveals that upside momentum within the Dow Jones is fading. This will at instances precede a flip decrease. Costs are struggling to push above the 38.2% Fibonacci extension at 31551. Fast help appears to be on the 31188 inflection level. A flip decrease could place the concentrate on rising help from March.

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Top Trading Opportunities in 2021

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Dow Jones Futures Each day Chart

Dow Jones, S&P 500 Forecast: Retail Trader Signals Hint of a Turn Lower

Dow Jones Chart Created in Buying and selling View

S&P 500 Sentiment Outlook – Bearish

The IGCS gauge implies that roughly 46% of retail merchants are internet lengthy the S&P 500. Upside publicity has elevated by 7.41% and 27.61% over a day by day and weekly foundation respectively. Current modifications in sentiment warn that the present worth development could quickly reverse decrease regardless of the very fact merchants stay internetquick.

Dow Jones, S&P 500 Forecast: Retail Trader Signals Hint of a Turn Lower

Technical Evaluation

Damaging RSI divergence warns that upside momentum is fading within the S&P 500. Additional losses could place the concentrate on rising help from March – see chart beneath. A drop via it might expose lows from January. Uptrend resumption, then again, might place the concentrate on 3975, the midpoint of the Fibonacci extension.

S&P 500 Futures Each day Chart

Dow Jones, S&P 500 Forecast: Retail Trader Signals Hint of a Turn Lower

S&P 500 Chart Created in Buying and selling View

*IG Shopper Sentiment Charts and Positioning Knowledge Used from February 24th Report

— Written by Daniel Dubrovsky, Strategist for DailyFX.com

To contact Daniel, use the feedback part beneath or @ddubrovskyFX on Twitter