The major indices
Indices
Stock market indices represents an index that measures a particular stock market or a segmen
The major indices
Indices
Stock market indices represents an index that measures a particular stock market or a segment of the stock market. These instruments are important investors as they help compare current price levels with past prices to calculate market performance.The main two parameters for indices are that they are both investable and transparent. For example, investors can invest in a stock market index by buying an index fund, which is structured as either a mutual fund or an exchange-traded fund, and track an index. The difference between an index fund’s performance and the index, if any, is called tracking error. Most major countries boast multiple indices. Commonly traded indices include the S&P 500, NASDAQ-100, Dow Jones Industrial Average (DIJA), EURO STOXX 50, Hang Seng Index, and many more.Stock market indices can be characterized or segmented by the index coverage set of stocks. The overall coverage of an index constitutes an underlying group of stocks, most commonly grouped together by underlying investor demand.How to Trade IndicesRetail brokers offer indices exposure through the use of contracts-for-difference (CFDs) or exchange-traded funds (ETFs). Each are popular ways to trade specific markets and are almost always on offer at most brokers.Investors can choose between multiple types of indices that traditionally fall within several categories. This includes country coverage, regional coverage, global coverage, exchange-based coverage, and sector-based coverage.All indices are ultimately weighted in a number of different ways. The most common mechanisms include market-capitalization weighting, free-float adjusted market capitalization weighting, volatility weighting, price weighting, and others.
Stock market indices represents an index that measures a particular stock market or a segment of the stock market. These instruments are important investors as they help compare current price levels with past prices to calculate market performance.The main two parameters for indices are that they are both investable and transparent. For example, investors can invest in a stock market index by buying an index fund, which is structured as either a mutual fund or an exchange-traded fund, and track an index. The difference between an index fund’s performance and the index, if any, is called tracking error. Most major countries boast multiple indices. Commonly traded indices include the S&P 500, NASDAQ-100, Dow Jones Industrial Average (DIJA), EURO STOXX 50, Hang Seng Index, and many more.Stock market indices can be characterized or segmented by the index coverage set of stocks. The overall coverage of an index constitutes an underlying group of stocks, most commonly grouped together by underlying investor demand.How to Trade IndicesRetail brokers offer indices exposure through the use of contracts-for-difference (CFDs) or exchange-traded funds (ETFs). Each are popular ways to trade specific markets and are almost always on offer at most brokers.Investors can choose between multiple types of indices that traditionally fall within several categories. This includes country coverage, regional coverage, global coverage, exchange-based coverage, and sector-based coverage.All indices are ultimately weighted in a number of different ways. The most common mechanisms include market-capitalization weighting, free-float adjusted market capitalization weighting, volatility weighting, price weighting, and others. Read this Term in Europe are closing with gains on the day, and also close higher for the week despite all the anxiety from the Russian/Ukraine war.
A look at the major indices shows:
German DAX, +1.38%
France’s CAC, +0.85%
UK’s FTSE 100 +0.80%
Spain’s Ibex, +0.9%
Italy’s FTSE MIB +0.68%
For the trading week the major indices all recovered and closed with gains. Recall:
German DAX, +4.07%
France’s CAC, +3.28%
UK’s FTSE 100, +2.31%
Spain’s Ibex, +5.46%
Italy’s FTSE MIB +2.67%
Looking at the German Dax hourly chart below, the week started with the pair trading at the lowest level since November 9, 2020. That low reached 12438.85.
However the price started to move higher and reached a week high price today of 13943.97.
The last three hours have pushed the price back below its 100 hour moving average at 13661.26 which took away some of the bullish bias from the move to the upside. However the price is not trading that far away from that moving average.
The this essay the 100 hour moving average will be a risk and bias defining level going into the new week. Move above and the bias tilts a little more to the upside. Move below and the sellers are more in control.
German DAX closed near its 100 hour moving average