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Bearish Alert: Nasdaq’s Downtrend May Deepen Beyond 5%Hey Realistic Traders, Will CAPITALCOM:US100 Bearish Trend Stop? Let’s Dive In.... On the H4 timeframe, Nasdaq continues to follow the bearish trendline and the EMA-200 . Both trend analysis tools clearly signal a bearish trend. The downtrend may persist as a rising wedge pattern has formed, followed by a breakout and a MACD crossover. Based on these technical signals, I anticipate a potential downward movement toward the first target at 19,077. After reaching this level, a minor pullback is likely before the decline continues toward a new low at 18,544. This outlook remains valid as long as the price move below the stop-loss level at 20,080 Besides technical factors, U.S. President Donald Trump still intends to implement new reciprocal tariff rates on April 2, adding further uncertainty to the market. This could limit growth potential and contribute to an inflationary environment by increasing the cost of imported goods. Given this uncertainty, we believe the market will continue to decline. Support the channel by engaging with the content, using the rocket button, and sharing your opinions in the comments below. Disclaimer: "Please note that this analysis is solely for educational purposes and should not be considered a recommendation to take a long or short position on Nasdaq.
CAPITALCOM:US100Short
by financialfreedomgoals101
2
S&P500: Bottom is in. Strong 5month rally ahead.S&P500 is bearish on its 1D technical outlook (RSI = 38.840, MACD = -92.170, ADX = 55.129) as it hasn't crossed above the 4H MA50 or the 1D MA50 yet. Still, it did price the bottom on the HL trendline of its 2year Channel Up. The 4H MACD formed however a new Bullish Cross on the LH trendline, same as the October 31st 2023 HL bottom. As the market did then (October 2023), the 4H Death Cross that took place last week, happened exactly at the bottom and the 0.618 Fibonacci of the previous HL. We are still bullish and our target remains the -0.618 Fib (TP = 6,900). ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
TVC:SPXLong
by InvestingScope
3
DOW JONES: MA50-100 Bearish Cross says we've bottomed.Dow Jones is almost neutral on its 1D technical outlook (RSI = 43.171, MACD = -608.620, ADX = 62.568), rising aggressively since last week. Technically that was the bottom no just on the 8 month Channel Up but also on the LL trendline. We've seen the very same LL bottom on the October 2023 and March 2023 lows, all of which had oversold 1D RSIs. The 1D MA50-100 Bearish Cross marked those bottoms and today we've completed a new one. Technically the index can rise as high as the 2.0 Fibonacci extension (TP = 49,000). ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
CAPITALCOM:US30Long
by InvestingScope
S&P500: Bottom of 2 year Channel. Target 6900.S&P500 is oversold on its 1D technical outlook (RSI = 27.644, MACD = -113.480, ADX = 60.232) as the price didn't only cross under the 1D MA200 but is also almost at the bottom of the 2 year Channel Up. In the meantime, the price reached the 0.618 Fibonacci retracement level while the 1D MACD touched its LH trendline. The last time all those conditions were met at the same time was on the October 30th 2023 Low. What followed was a massive rally to the -0.618 Fib extension before the next 1D MA50 pullback. This is a unique opportunity to buy and aim for the -0.618 Fib (TP = 6,900). ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
TVC:SPXLong
by InvestingScope
2
Index Investing: A Practical Approach to Market ParticipationIndex Investing: A Practical Approach to Market Participation Index investing has become a popular way for traders and investors to access the broader market. By tracking the performance of financial indices like the S&P 500 or FTSE 100, index investing offers diversification, lower costs, and steady exposure to market trends. This article explores how index investing works, its advantages, potential risks, and strategies to suit different goals. Index Investing Definition Index investing is a strategy where traders and investors focus on tracking the performance of a specific financial market index, such as the FTSE 100 or S&P 500. These indices represent a collection of stocks or other assets, grouped to reflect a segment of the market. Instead of picking individual assets, index investors aim to match the returns of the entire index by investing in a fund that mirrors its composition. For example, if an investor puts money in a fund tracking the Nasdaq-100, it’s effectively spread across all companies in that index, including tech giants like Apple or Microsoft. This approach provides instant diversification, as the investor is not reliant on the performance of a single stock. This style of investing is often seen as a straightforward way to gain exposure to broad market trends without the need for active stock picking. Many investors choose exchange-traded funds (ETFs) for this purpose, as they trade on stock exchanges like individual shares and often come with lower fees compared to actively managed funds. How Index Investing Works Indices are constructed by grouping a selection of assets—usually stocks—to represent a specific market or sector. For instance, the S&P 500 includes 500 large-cap US companies, weighted by their market capitalisation. This means larger companies like Apple and Amazon have a greater impact on the index performance than smaller firms. The same principle applies to indices like the FTSE 100, which represents the 100 largest companies listed on the London Stock Exchange. Index funds aim to mirror the performance of these indices. Fund managers have two primary methods for this: direct replication and synthetic replication. With direct replication, the fund buys and holds every asset in the market, matching their exact proportions. For example, a fund tracking the Nasdaq-100 would hold shares of all 100 companies in that index. Synthetic replication, on the other hand, uses derivatives like swaps to mimic the index's returns without directly holding the assets. This method can reduce costs but introduces counterparty risk, as it relies on financial agreements with third parties. Because index investing doesn’t involve constant buying and selling of assets, funds typically have lower management fees compared to actively managed portfolios. Fund managers don’t need to research individual stocks or adjust holdings frequently, making this a cost-efficient option for gaining exposure to broad market trends. Advantages and Disadvantages of Index Investing Index investing has become a popular choice for those looking for a straightforward way to align their portfolios with market performance. However, while it offers some clear advantages, there are also limitations worth considering. Let’s break it down: Advantages - Diversification: By investing in an index fund, investors gain exposure to a broad range of assets, reducing the impact of poor performance from any single stock. For instance, tracking the S&P 500 spreads investments across 500 companies. - Cost-Efficiency: Index funds often have lower fees compared to actively managed funds because they require less trading and oversight. Passive management keeps costs low, which can lead to higher net returns over time. - Transparency: Indices are publicly listed, so investors always know which assets they are invested in and how those assets are weighted. - Consistent Market Exposure: These funds aim to match the performance of the market segment they track, providing reliable exposure to its overall trends. - Accessibility: As exchange-traded funds (ETFs) are traded on stock exchanges, this allows investors to buy into large markets with the same simplicity as purchasing a single stock. Disadvantages - Limited Flexibility: Index funds strictly follow the composition of the underlying assets, meaning they can’t respond to other market opportunities or avoid underperforming sectors. - Market Risk: Since these funds mirror the broader market, they’re fully exposed to downturns. If the market drops, so will the fund’s value. - Tracking Errors: Some funds may not perfectly replicate an index due to fees or slight differences in holdings, which can cause performance to deviate. - Lack of Customisation: Broad-based investing doesn’t allow for personalisation based on individual preferences or ethical considerations. Index Investing Strategies Index investing isn’t just about buying a fund and waiting—an index investment strategy can be tailored to suit different goals and market conditions. Here are some of the most common strategies investors use: Buy-and-Hold This long-term index investing strategy involves purchasing an index fund and holding it for years, potentially decades. The aim is to capture overall market growth over time, which has historically trended upwards. This strategy works well for those who value simplicity and are focused on building wealth gradually. Sector Rotation Some investors focus on specific sectors within indices, such as technology or healthcare, depending on economic trends. This strategy can help take advantage of sectors expected to outperform while avoiding less promising areas. For instance, in periods of economic downturn, investors might allocate funds to the MSCI Consumer Staples Index, given consumer staples’ defensive nature. Dollar-Cost Averaging (DCA) Rather than investing a lump sum, this index fund investing strategy involves putting money away regularly—say monthly—into indices, regardless of market performance. DCA reduces the impact of market volatility by spreading purchases over time. The Boglehead Three-Fund Index Portfolio Inspired by Vanguard founder John Bogle, this strategy is a popular approach for simplicity and diversification. It involves splitting index investments across three areas: a domestic stock fund, an international stock fund, and a bond fund. This mix provides broad market exposure and balances growth with risk. According to theory, the strategy is cost-efficient and adaptable to individual risk tolerance, making it a favourite among long-term index investors. Hedging with Index CFDs Traders looking for potential shorter-term opportunities might use index CFDs to hedge against broader market movements or amplify their exposure to a specific trend. With CFDs, traders can go long or short, depending on their analysis, without owning the underlying funds or shares. Who Usually Considers Investing in Indices? Index investing isn’t a one-size-fits-all approach, but it can suit a variety of investors depending on their goals and preferences. Here’s a look at who might find this strategy appealing: Long-Term Investors For those with a long investment horizon, such as individuals saving for retirement, this style of investing offers a practical way to grow wealth over time. By capturing the overall market performance, investors can build a portfolio that aligns with steady, long-term trends. Passive Investors If investors prefer a hands-off approach, index funds can be an option. They require minimal effort to maintain, as they simply track the performance of the market. This makes them appealing to those who want exposure to the markets without constantly managing their investments. Cost-Conscious Investors These passive funds typically have lower management fees than actively managed funds, making them attractive to those who want to minimise costs. Over time, this cost-efficiency might enhance overall returns. Diversification Seekers Investors who value broad exposure will appreciate the inherent diversification of index funds. By investing in an index, they’re spreading risks across dozens—or even hundreds—of assets, reducing reliance on any single stock. CFD Index Trading However, not everyone wants and can invest in funds. Index investing may be very complicated and require substantial funds. It’s where CFD trading may offer an alternative way to engage with index investing, giving traders access to markets without needing to directly own the underlying assets. With CFDs, or Contracts for Difference, traders can speculate on the price movements of an index—such as the S&P 500, FTSE 100, or DAX—whether the market is rising or falling. This flexibility makes CFDs particularly appealing to those who want to take a more active role in the markets. One key advantage of CFDs is the ability to trade with leverage. Leverage allows traders to control a larger position than their initial capital, amplifying potential returns. For instance, with 10:1 leverage, a $1,000 deposit can control a $10,000 position on an index. However, it’s crucial to remember that leverage also increases risk, magnifying losses as well as potential returns. CFDs also enable short selling, allowing traders to take advantage of bearish market conditions. If a trader analyses that a specific index may decline, they can open a short position and potentially generate returns from the downturn—a feature not easily accessible with traditional funds. CFDs can also be used to trade stocks and ETFs. For example, stock CFDs let traders focus on individual companies within an index, such as Apple or Tesla, without needing to buy the shares outright. ETF CFDs, on the other hand, allow for diversification across sectors or themes, mirroring the performance of specific industries or broader markets. One notable feature of CFD trading is its accessibility to global markets. From the Nikkei 225 in Japan to the Dow Jones in the US, traders can access indices from around the world, opening up potential opportunities in different time zones and economies. In short, for active traders looking to amplify their exposure to indices or explore potential short-term opportunities, CFD trading can be more suitable than traditional indices investing. The Bottom Line Index investing offers a practical way to gain market exposure, while trading index CFDs adds flexibility for active traders. With CFDs, you can get exposure to indices, ETFs and stocks. Moreover, you can take advantage of both rising and falling prices without the need to wait for upward trends. Whether you're aiming for long-term growth or potential short-term opportunities, combining these approaches can diversify your strategy. With FXOpen, you can trade index, stock, and ETF CFDs from global markets, alongside hundreds of other assets. Open an FXOpen account today to explore trading with low costs and tools designed for traders of all levels. Good luck! FAQ What Is Index Investing? Index investing involves tracking the performance of a specific financial market index, such as the S&P 500 or FTSE 100, by investing in funds that mirror the index. It provides broad market exposure and is often seen as a straightforward, passive investment strategy. What Are Index Funds? Index funds are financial instruments created to mirror the performance of a particular market index. They’re commonly structured as mutual funds or ETFs. At FXOpen, you can trade CFDs on a wide range of ETFs, including the one that tracks the performance of the S&P 500 index. What Makes Indices Useful? Indices offer a benchmark for understanding market performance and provide a way to diversify investments. By representing a segment of the market, they allow investors and traders to gain exposure to multiple assets in one investment. Is It Better to Invest in Indices or Stocks? It depends on your goals. According to theory, indices provide diversification and potentially lower risk compared to picking individual stocks, but stocks might offer higher potential returns. Many traders and investors combine both approaches for a balanced portfolio. Does Index Investing Really Work? As with any financial asset, the effectiveness of investing depends on an investor’s or trader’s trading skills and strategy. According to theory, the S&P 500 has averaged annual returns of about 10% over several decades, making index investments potentially effective. However, this doesn’t mean index investing will work for everyone. What Are the Big 3 Index Funds? The "Big 3" index funds often refer to those from Vanguard, BlackRock (iShares), and State Street (SPDR), which collectively manage a significant portion of global fund assets. For example, at FXOpen, you can trade CFDs on SPDR S&P 500 ETF Trust (SPY) tracking the S&P 500 stock market index and Vanguard High Dividend Yield ETF (VYM) which reflects the performance of the FTSE High Dividend Yield Index. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
FXOPEN:SPXMEducation
by FXOpen
1
S&P500: Broke its 1W MA50 after 17 months. Recovery or collapse?The S&P500 turned oversold on its 1D technical outlook (RSI = 29.430, MACD = -85.410, ADX = 51.223) as it breached today its 1W MA50 for the first time since the week of October 30th 2023, i.e. almost 1.5 year. That was a week of a very aggressive recovery after a Channel Up correction, with the bullish sequence reaching 9 straight green weeks. With the 1D RSI ovesold and the 1W RSI almost on the 39.15 Support, which was the low of the October 23rd 2023 1W candle, the index couldn't have been technically on a better long term buy spot. Needless to say, the market can't rise if the fundamentals are against it and right now the geopolitical tensions and more importantly the trade war isn't helping. If the index does find a positive catalyst to take advantage of, then the bullish technicals of the Channel Up bottom will prevail, and this week's candle may resemble the Max Pain 1W candle under the 1W MA50 of October 23rd 2023. Even if it doesn't rise as high as the 2.382 Fibonacci extension of that rally, we would expect in that instance a 2.0 Fib extension rally like the post August 2024 bullish wave (TP = 6,700). Failure to find support this week though, will most likely result in further collapse (even more aggressively so) to the 1W MA100. ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
TVC:SPX
by InvestingScope
4
SPX Is About to Explode – Here’s What I’m WatchingSPX is at a critical level, and whichever way it breaks, the move could be huge. Here’s my take: If we drop below 5663, I see a move down to 5534 – 5445. If that zone fails, we could head toward 5332, and if selling pressure keeps up, 5234 might be next. But if we break above 5800, the bulls could take over, pushing to 5972, and maybe even 6149. It’s all about reaction levels now. I’m watching these zones closely—what’s your take? Are we heading up or breaking down? Kris/ Mindbloome Exchange Trader Smarter Live Better
SP:SPX
by Mindbloome-Trading
2
NASDAQ: Opening selloff is a buy opportunity.Nasdaq remains bullish on its 1D technical outlook (RSI = 60.351, MACD = 161.240, ADX = 29.408) despite today's selling early into the session. This indicates that relative to the bullish long term trend, this correction is a buy opportunity, especially as the index hit its 4H MA50. This happens to be at the bottom of the 20day Channel Up, a pattern potentially identical to the December 10th low of the Channel Up. We are long, expecting a new +3.80% rise (TP = 22,700). ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
CAPITALCOM:US100Long
by InvestingScope
1
NASDAQ: Perfect neutral setup for scalp buy.Nasdaq is neutral on its 1D technical outlook (RSI = 52.467, MACD = 38.030, ADX = 17.154) since the index has been consolidating for the past 6 weeks. This offers great opportunities to buy low and sell high. At the moment the 1H RSI oversold bounce indicates that we has started a similar Channel Up so Jan 13th and Jan 27th. The symmetric RSI level suggests that this is where the index pulls back to retest the 1H MA50 and then rebounds for a new HH. On the medium term we are limited by the R1 Zone, so aim for its bottom (TP = 21,845). ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
CAPITALCOM:US100Long
by InvestingScope
1
DOW JONES: Buy signal above the 4month RectangleDow Jones just turned bullish on its 1D technical outlook (RSI = 56.676, MACD = 255.440, ADX = 30.051) as it hit the 4H MA50 after an instant rebound on the 4H MA100 inside the same session. This is a strong bullish reversal but the buy signal will be validated if the price crosses over the 4month Rectangle pattern. The rally from its January 13th bottom has been with a significant correction until Friday's and today so far and according to the November rally which was two-fold, if this is the start of the 2nd bullish stage, it should be -1.70% weaker than the first. This implies that from today's low we should rise by +6.30%. This gives us a TP = 46,550 but in order to overcome the bearish pressure of the Rectangle, we will buy only if then price crosses over it. See how our prior idea has worked out: ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
CAPITALCOM:US30
by InvestingScope
1
NASDAQ: Now targets 24,000 by Q2Nasdaq has recovered yesterday's crash and turned neutral again on its 1D technical outlook (RSI = 51.692, MACD = 88.960, ADX = 31.397). The current rebound is taking place on the 1D MA50 and is a double bottom on the P1 level, which was previously a Resistance coming from the July 11th 2024 High. The same P1 level was seen supporting a year ago the January 5th 2024 Low. This hold ended in a rally to the 1.5 Fibonacci extension. With even their RSI Channel Down patterns being identical, we expect a new bullish wave to start now, aiming the 1.5 Fib once again (TP = 24,000). See how our prior idea has worked out: ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
CAPITALCOM:US100Long
by InvestingScope
DOW JONES: Absorbing tech sector's losses.Dow Jones remains heavily bullish on its 1D technical outlook (RSI = 63.633, MACD = 251.980, ADX = 35.788) and in contrast with Nasdaq's heavy losses, which is rattled by DeepSeek, it is rising. It seems that industrial stocks are absorbing quite a significant portion of tech's losses. Dow's long term Channel Up pattern remains intact and last week's crossing over the 1D MA50 and the bearish wave, confirmed that we are at the start of the new bullish wave. Based on the HL of the 1D RSI that was completed on the January 10th bottom, we draw strong comparisons with the October 27th 2023 bottom. If the index holds the 1D MA50, we expect the next high to be at 48,000 and after a pullback, complete the wave by May on a +20.75% rise (TP = 50,500), same as the increase of the 2024 bullish wave. See how our prior idea has worked out: ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
CAPITALCOM:US30Long
by InvestingScope
2
S&P500: Be careful of this 4H Golden Cross.S&P500 is on a very healthy bullish 1D technical outlook (RSI = 61.261, MACD = -3.250, ADX = 30.268) and on 4H it is about to form the first Golden Cross since August 21st 2024. During these 5 months, the trend has been heavily bullish but the 4H Golden Cross only managed one last High before the price corrected again to the 1D MA100. The 4H RSI indicates that we might technically be at the start of this final High pricing. For now we will stay bullish (TP = 6,165) but after that, we will only buy again on the 1D MA100. ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
CAPITALCOM:US500Long
by InvestingScope
1
NASDAQ: 4H MA200 held, Channel Up targeting 21,850.Nasdaq has just turned bullish on its 1D technical outlook (RSI = 56.079, MACD = 48.410, ADX = 18.587), which is a strong buy signal after two days of consolidation, considering that the short term pattern is a Channel Up. Assuming that consolidation was its latest correction that had to test the 4H MA200 as support, we now expect the pattern to resume the uptrend and target the R2 level (TP = 21,860). ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
CAPITALCOM:US100Long
by InvestingScope
DOW JONES: Crossed above the monthly Channel Down. Buy signal.Dow Jones turned bullish again on its 1D technical outlook (RSI = 57.829, MACD = -79.310, ADX = 34.732) as it crossed over the Channel Down that is the bearish wave of the long term bullish trend. The 1W MA50 held and we have to go back to October 30th 2023 to find the last time that the index was under it. If the 1W RSI crosses above the MA trendline, we will confirm that most likely we are going to have a November 6th 2023 type of bullish breakout. The major rallies of the past years have been at least +20%. Buy and TP = 50,500. See how our prior idea has worked out: ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
CAPITALCOM:US30Long
by InvestingScope
DAX: Healthy Channel Up aiming at 21,350DAX is on excellent bullish levels on its 1D technical outlook (RSI = 66.832, MACD = 222.700, ADX = 20.758) as it just crossed the previous Resistance of the 5 month Channel Up. This is technically the new bullish wave of the pattern which got further confirmed after Monday's bounce on the 4H MA200. Both 1D MACD wise and relative price structure, it looks much like the previous two bullish waves. The recent HH was on the 2.0 Fibonacci extension, thus we're aiming for the top of the pattern (TP = 21,350) yet again. See how our prior idea has worked out: ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
CAPITALCOM:DE40Long
by InvestingScope
S&P500: Every January same rally starting. Target = 6,950.S&P500 is neutral on its 1D technical outlook (RSI = 48.738, MACD = -35.090, ADX = 24.753) but just turned marginally bullish on 1W (RSI = 55.182) today. This technically signifies the market's enormous upside potential on the long term. The 2 year pattern is a Channel Up after all and every January since 2023, a new rally starts which exceeds +20% in gains. As long as the 1W MA50 supports, the bullish trend will be dominant. We are aiming for another +21% rise like the previous Jan 2024 rally (TP = 6,950). ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
TVC:SPXLong
by InvestingScope
2
"Awaiting Bearish Confirmation at Key Resistance Zone on DXY"Based on the chart of the U.S. Dollar Index: 1. **Trend Analysis**: The index is currently within an upward channel, indicating a bullish trend. The price is oscillating between the upper and lower boundaries of this channel. 2. **Recent Movements**: There’s a noticeable price peak around the upper boundary, suggesting potential exhaustion. The recent downward movement indicates the possibility of a reversal. 3. **Bearish Confirmation**: The note emphasizes waiting for bearish confirmation before executing any trades. This suggests that it's prudent to look for signs of trend reversal or weakening momentum before making a bearish move. 4. **Strategy**: The advice is clear: without confirmation of a bearish trend, no trading should occur, highlighting a cautious approach. 5. **Key Levels**: Watch for key support around the mid-channel and resistance near the upper boundary, which could signal entry or exit points. Overall, the chart indicates a cautious approach is necessary, focusing on confirmations before taking any trading actions.
TVC:DXYShort
by TRADE_CENTER_1
NASDAQ: First 4H Death Cross since September is a Buy Signal!Nasdaq is bearish on its 1D technical outlook (RSI = 39.062, MACD = -70.200, ADX = 29.762) as it is on a downtrend since December 16th, almost 1 month. Technically this downtrend is the bearish wave of the medium term Channel Up. Last Wednesday the index formed its first 4H Death Cross since September 10th 2024 and interestingly enough, instead of bullish, it was a buy signal then. As the current bearish wave is now almost at the bottom of the Channel Up, this is technically a HL, thus the most efficient buy entry on the short term. The September bullish wave peaked on the 1.236 Fibonacci extension before a pullback under the 4H MA50 again, so we now turn bullish on Nasdaq, aiming again for the 1.236 Fib (TP = 22,500). ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
CAPITALCOM:US100Long
by InvestingScope