Stock Indices use a portfolio of representative companies (usually spanning major industries) to reflect the status of the whole stock market. There are basically three kinds: global, regional and national. Global indices include companies regardless of where they are traded. Regional indices include companies from a certain region and national indices include companies from a specific nation. Stock Indices are used to get an indication of the market's overall direction. Some analysts use them as a barometer of the underlying economy.
Indices can be comprised of tens to hundreds of stocks and each index calculates the weighted average differently. Some weigh the stocks equally (equal weighting), others take company size into account (capitalization weighting) and others use a hybrid method (modified capitalization weighting). Stock Indices are tradable entities themselves. A currency index is a measure of the value of a specific currency relative to other select currencies. Indices like the US Dollar Index or the Euro Currency Index are used to gauge the strength of those respective currencies.
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Hi traders,
the SP500 took out the previous high we were looking for. This gives us the minimum requirements for a high probability bearish reversal.
Safe trades!
1-2-1-2 give a clue of how much time the rest of the decline may take. The full w3 should unfold before end Aug, the rest should take another month or so.
Wave model projected 25076 on Dow got to 25070. Divergence in indices suggests flight to quality - dumping tech to buy blue chips, nervous toppy behavior.
Can go higher but is due for a pullback and possibly a substantial drawdown. Wave C could carry to 23800 or lower.
Could get a shooting star Tues to confirm topping. Other indexes already moving lower and ...
As maintained yesterday, Nifty is in correction mode after a steady gain for 12 straight sessions. Price came down towards the breakout point. If goes down this line, 50 DMA (10731) may be seen. As per OI table bulls are holding guard to 10600,10700,10800,10900 Puts. Major Trend remains up.
Wave 5 about to get hit on NASDAQ 100, with price expectation for wave 5 at 7500-7575, thereafter we may have small ABC correction wave, just because is an uptrend market.
The price is testing the lower band of the formation. As long as the price stays above the band and 50 moving averages, we can expect the movement towards the upper band with the level of 12 630. But if the parity drops, in mid-term we will watch 50.0% at 12 400 and 61.8% at 12 360 Fibonacci retracement levels.
Good ...
After what has been a volatile and choppy start to 2018 I decided to take a look at a longer term perspective on the SPX. While many "experts" have stated that we are in a bear market or that this is the top of the market. In my opinion I believe what we've experienced so far this year to a HEALTHY and much needed consolidation phase. Currently it appears we are ...
