What is Trading Indicators?

This service combines multiple medium-term indicators used by professional traders to estimate the likely direction of the stock and crypto markets over the next 6–18 months. It is primarily designed to anticipate the performance of the S&P 500 and Bitcoin, which strongly influence most cryptocurrencies and many growth and technology stocks such as Microsoft, Nvidia, and Google.

Why Are These Indicators Important?

To understand their importance, it is essential to understand what drives market prices.

1. Prices Are Driven by Multiple Forces

Market prices typically reflect a combination of:

• Technical indicators — such as trading volume, moving averages, and Relative Strength Index (RSI).
• Macroeconomic (fundamental) indicators — such as inflation and interest rates.
• Sentiment indicators — such as the put/call ratio and the Fear & Greed Index.

This service currently includes a selected subset of these indicators, with plans to expand coverage over time.

2. Growth Stocks and Crypto Often Move Together

Many technology and growth stocks, along with cryptocurrencies, tend to move in the same direction at the same time. This is largely due to shared sensitivity to liquidity, interest rates, and risk appetite.

3. Central Bank Policy Has Major Impact

Central bank actions strongly affect market prices:

• Quantitative tightening (QT) — reduces liquidity and often pressures prices.
• Quantitative easing (QE) — increases liquidity and often supports prices.
• Rising interest rates — typically negative for risk assets.
• Falling interest rates — typically supportive for risk assets.

Indicators such as US CPI and policy rates help monitor this environment.

4. The Economy Influences Markets

Economic strength generally supports asset prices, while economic weakness can weigh on markets. Indicators such as unemployment rate and jobless claims help track the health of the economy.

5. Market Psychology Matters

Investor behavior is often driven by emotion. Patterns such as FOMO (fear of missing out) and panic selling tend to repeat.

• Excessive euphoria can signal increased downside risk.
• Extreme fear can signal potential opportunity.

Sentiment tools such as the Fear & Greed Index and options put/call ratios help measure these conditions.

Why Focus on the S&P 500 and Bitcoin?

The S&P 500 represents 500 of the largest US companies and is widely viewed as a benchmark for the broader equity market. Because the United States is the world’s largest economy, movements in the S&P 500 often influence global equity trends.

Bitcoin is the leading cryptocurrency by market influence and frequently sets the directional tone for the broader crypto market. When Bitcoin trends strongly, many altcoins tend to follow.

In broad terms, market influence often flows as follows:

Economy → Central Bank Policy → S&P 500 ↔ Crypto → Individual Stocks and Altcoins

By monitoring the key drivers at the top of this chain, the service aims to provide early signals about the broader market environment.