Understanding Stock Market Movement
Given enough time investing in the stock market, a trader will tell you that the research and analysis require the most time. In order to be successful, an investor needs to understand how the markets move and how to interpret differences in the various market indexes and what they mean. This kind of evaluation becomes an important part of an investor's technical analysis of the stock market. It can add further clarity to various stock market movements and help an investor to find potential trades. Let's start this review by looking at each of the big three market indexes: o S&P 500 - This market index is most commonly used by professionals in the financial world because it includes such a large sector of the market. It includes 500 of the most widely traded stocks and because it is a market cap weighted index, changes in larger companies tend to reflect more strongly than small-cap stocks. The S&P 500 tends to be a more accurate indicator of market movements than the