Index market analysis

Find below top down index market analysis exclusively using supply and demand imbalances together with price action.
Bear in mind that a top down technical analysis is needed to make a trading decision, a single timeframe is not enough to place a trade. There are not signals, they are meant to point out strong imbalances usually in a clear trending market.

Top Indexes analysis today

8th December 2020
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Nifty 50 and NSE stocks buying opportunities

As explained in a previous Nifty 50 futures supply and demand forecast, we were expecting bullish impulses on both Nifty 50 and Bank Nifty futures. All-time highs and 52-week highs have been eliminated as expected and explained in prior Nifty 50 analysis, Higher probability Nifty 50 futures trading December 2020 As supply and demand traders […]
8th December 2020

Bank Nifty index forecast 2021

As explained in a previous Bank Nifty futures supply and demand forecast, Bank Nifty India managed to broke all-time high last December 2019 but covid-19 fear shuttered the progress the index had made in previous months creating one of the strongest bearish impulses in many years. Since that strong sell-off at the beginning of 2020, […]
17th November 2020
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Nikkei Index futures forecast 2020

Nikkei Index futures are moving higher breaking price levels from September 2018. As expected and mentioned in previous Nikkei 225 index analysis, a new strong bullish impulse has been created around 23,572 price level. The strength of that movement has turned that bullish impulse into a strong demand imbalance for the Japanese index. Nikkei 225 […]
4th November 2020
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Trading Forex and Stocks during the US Elections 2020. The power of supply and demand imbalances

The outcome of the US presidential election 2020 is on a knife-edge, with Donald Trump and his rival Joe Biden neck and neck in key swing states. As a Forex or Stock traders, you will probably be scared by the high volatility of the markets during the elections. As a supply and demand trader, you […]
14th October 2020
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EURUSD and Dollar Index analysis 2020

EURUSD and Dollar Index analysis 2020 updates. As explained in previous EURUSD and Dollar Index #DXY analyses, we are expecting a bigger correction on EURUSD and Dollar Index after such strong impulses. Going long on EURUSD and short on Dollar Index is not a good idea given the strength of the bullish impulse on EURUSD and the bearish impulse […]
23rd September 2020
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Dollar Index DXY strength. Buy opportunities

As discussed in previous US Dollar Index DXY supply and demand analysis and forecast, the expected bullish correction is happening. . The EURUSD forex cross pair forecast and analysis is very similar but we are expecting a bearish correction instead. As a Forex trader, you should know that EURUSD and Dollar Index DXY are inversely […]

Index market analysis is a method for investors and traders to make buying and selling decisions in american indexes and other indexes from many other countries and exchanges. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions based on a set of rules predefined in a trading plan.

An index market analysis does not require a Ph.D in economics or knowing everything about the underlying stocks the indexes are composed of. Reading price action alone and understanding how new imbalances are created is more than enough analyse the indexes. You will read many traders and educators saying very different things, trying to sell you their strategy. That’s perfectly fine, there are hundreds if not thousands of trading strategies that will help you become successful trading indexes and doing a top down analysis of any index. Just remember to stick to a single strategy, that will prevent you from clouding your mind with different scenarios and trading ideas that will most likely contradict each other.

Technical analysis of indexes

Traditionally, the technical analysis of indexes has been the study of historical market data, including price and volume, while at the same time using tools like trendlines and support and resistance levels to help you trade with the support of as many indicators as possible. Technical analysis hasn’t always been used in the past, most traders used to trade fundamental analysis of american indexes like S&P500, Nasdaq and Dow Jones. As supply and demand traders we also have to use technical analysis on these important indexes, it’s the core of what we do because trendlines and the strength of price action will indicate us potential huge imbalances where we want to place our trades. However, we do not need to take into consideration volume or fundamental analysis in our technical analysis of stocks, because price action alone will tell us all we need to do. Price action is alone is not enough, we must the price action into context since context is everything.

Index chart

Examples of index charts will show us examples of how price action and supply and demand go hand in hand because every single imbalance is made of price action, candlesticks or bars if you are using the latter. Hundreds of index charts and potential trade setups are available in the set and forget trading community. We go over dozens of scenarios every week in our daily and weekly updates so you don’t have to do the hard work of locating those potential imbalances and trade opportunities.

Index trend analysis

The trend is your friend until it ends. Trading indexes like S&P500, Nasdaq, Dow Jones, Dax 30 and Nikkei in a clear trend is higher probability than trading them going against the trend. There is no such thing as the best index trend analysis, every trading strategy will have its own definition of a trend and we should use it as specified in its trading plan. As supply and demand traders, we will be using the price action and imbalances to learn about the index trend and trade accordingly.

A single timeframe is not enough to made a trading decision, neither are candlesticks and price action. We need a context, we must put price action into the context of the bigger picture trend analysis and avoid making a trading decision based on a single timeframe.

Index forecast long term

The most profitable bull market in history arouses a lot of interest among bears. American stock market indexes have started the new year 2020 at record highs. There is a clear long term bullish bias, but that does not mean we should be thinking of buying stocks and indexes right now because price does not move in straight lines. The long term forecast for indexes like &P500, Nasdaq, Dow Jones, Dax 30 and Nikkei is definitely bullish but we should be waiting for a strong bearish correction since all of these indexes and most of the underlying stocks have been rallying for years without a big retracement, meaning that a very strong correction will probably happen in 2020.

Long term forecast and prediction of major world indexes is crucial to position ourselves bullish or bearish in the stocks of our portfolio.

     
 

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