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If you’ve read the article on Sector analysis, this one will be fairly easy to understand. Since there are a lot of commonalities between the two articles, we won’t be going into too much depth in those similar points. So, if you’ve not read that article, we urge you to go through it here.
By default you’ll see the screen like this:
As you can see, the index analysis can be analyzed by two different sections– Fundamentals and Technicals. We’ve used the same ratios as used in Sector analysis.
In index, if you scroll down you’ll see we have all important indices as well as our custom indices like these:
You can scroll through the pages to see all the indices.
You can also analyse the Technicals of the indices.
If you ignore the Momentum indices (as they will naturally have stocks with good momentum), we can see that IT, Biotech, Healthcare, and Pharma have a high percentage of stocks above the 200 and 50, exponential and simple moving averages.
Going back to our earlier article, where we saw the healthcare, and IT sectors showing similar strong signs. (Check it again here.) We can draw a more concrete idea that both the index and sector are showing the same signals.
As you must have already understood, in sharpely, you don’t just make an assumption, you have multiple tools to solidify your analysis and make informed decisions.
Let’s now move to our next tool– RRG.