Jean-Pierre Poulin 7 Posted June 12, 2020 (edited) Hello fabulous BBT community! With the wild stock market ups and downs we're seeing these days, we'll frequently hear before the market opens on financial websites things like that "S&P Futures are up 400 points!" giving possible clues on how that markets will rally or fall during that day... Attempting to read this data myself I come up frustrated. For example if I overlay SPY with ES 09-20 or ES1! they are nearly identical to each other once properly re-scaled. I just don't see much divergence between the instruments and certainly not 400 points! What I my missing? What information source do market analyst review when they say things like "S&P/NYSE/NASDAQ Futures are up/down x points!" Thanks for the awesomeness and keep your person and your wallet safe! Jean-Pierre Edited June 12, 2020 by Jean-Pierre Poulin Share this post Link to post Share on other sites
Jean-Pierre Poulin 7 Posted June 12, 2020 Hi Marek, thanks for the prompt and useful response. I just checked SPX and SPY and the difference between the constantly traded SPY and normal-trading-hours SPX appears to explain the difference. Obviously if #ES and SPY are nearly identical then financial analysts could have talked about the overnight divergence between SPY and SPX instead of the futures... Q: What is your take on days when pre-market futures are way up or down? Has your observation been that the investors behind the futures are usually right and the market will go in the direction they predict? Do you pay any attention to futures as you begin your trading day? Thanks for the awesomeness! Share this post Link to post Share on other sites
