Financial speculators who think that a stock index is going to rise a lot for the year will want to buy index futures dated far into the year at a higher price because they expect the price to go up. Hence, if index futures curve is in contango, it means the market is forecasting a bull market ahead. Likewise, if the curve goes into backwardation, the market is forecasting a bear market ahead. Is my understanding? Correct me if I'm wrong. I'm new to index futures and still making losses.