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

9th April 2020
Singapore stocks market analysis

Singapore STI stock market analysis 2020

Stock markets across Asia and Europe have had a strong sell off for more than two consecutive months, Singapore STI is not an exception to the rule. This strong sell-off has affected most Singapore stocks and investment firms in the STI index and also across the Asian market floors and in all sectors and industries. […]
8th April 2020
German stocks market analysis

German Dax 30 stock market analysis 2020

Stock markets across Europe have had a strong sell off for more than two consecutive months, with the DAX 30 index dropping almost 40% since last December 2019. This strong sell-off has affected most German stocks in the German Dax 30 index and also across the European market floors and in all sectors and industries. […]
26th February 2020
stock trading courses

US Dollar Index DXY long term longs

The US Dollar Index is an index of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of U.S. trade partners’ currencies. This index is highly correlated with US dollar Forex cross pairs since it’s the reference for the US dollar strength versus strongest […]
1st December 2019
how to trade stocks for beginners

Nifty 50 Index All time High

Nifty 50 has broken all time highs again as expected and mentioned in previous video analysis. When trading our supply and demand strategy, you don’t need to pay attention to any fundamentals or earnings announcements, we base our entries on new imbalances. It’s very important to trade these strong impulse in the context of a […]
5th November 2019
how to trade stocks for beginners

Bank nifty index clear scenario for longs

Bank Nifty Indian Index bullish bias with new weekly demand imbalances. Bank Nifty Indian index has a clear long term long bias, bearish corrections must exist if we want to plan a trade using imbalance. The Indian stock market and its indexes does not move in straight lines and so do the other world indexes, […]
3rd November 2019
how to trade stocks for beginners

Nikkei 225 buy at demand level

Nikkei 225 Japanese Index has been rallying for a few weeks creating new strong weekly demand imbalances. Nikkei 225 index has unfortunately not retraced yet to any of these two strong weekly imbalances and continues to rally on its way to weekly supply imbalance around 23600. Nikkei 225 Japanese Index futures forecast As per the […]

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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