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 September 2020
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Expecting a bullish correction on Dollar Index DXY

Expecting a bullish correction on Dollar Index DXY after such a strong sell-off. Weekly supply level located much higher where we will be able to think of short positions on the Dollar Index DXY. The EURUSD forex cross pair forecast and analysis is very similar but we are expecting a bearish correction instead. EURUSD and […]
13th August 2020
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Dollar Index DXY forecast analysis August 2020

As expected and mentioned in previous Dollar Index DXY analysis, we had a strong monthly supply imbalance that took control and a big sell-off was expected. That’s exactly what has happened on Dollar Index DXY. A very similar technical analysis has been done for EURUSD Forex technical analysis and forecast a few more weeks back, […]
10th August 2020
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Bank Nifty long-term buying opportunities 202

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. Bank Nifty NSE index is moving higher as expected, […]
8th July 2020
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Dow Jones E-mini futures #YM forecast 2020

Dow Jones E-mini is an electronically traded futures contract representing a portion of standard DJIA futures, E-mini Dow futures offer an accessible alternative to manage exposure to the U.S. stock market. Based on the Dow Jones Industrial Average, E-mini Dow futures offer exposure to the 30 U.S. blue-chip companies represented in the stock index.   […]
7th July 2020
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Nifty 50 futures forecast analysis

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 after they broke all-time high last December 2019 where covid-19 fear shuttered the progress the index had made in previous months creating one of the strongest bearish impulses in many […]
7th July 2020
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Bank Nifty analysis forecast

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. As supply and demand traders we must not sell […]

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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