03/06/07 engulfing bar on SP-500 index

Discussion in 'Trading' started by diligent, Mar 7, 2007.

  1. BUT not on spy.... in fact the spy 03/06/07 bar does not look nearly as bullish as the SP-500 index bar... i.e. it is not engulfing.

    do you think it is possible that the SP-500 calculation was purposefully set lower so that the entire bar could engulf the previous day's action?

    i find this a little fishy.
  2. Prevail

    Prevail Guest

    tradable instruments gap, an index does not.
  3. dont you see a opening gap of over 36 points on 02/27/07 on the Nasdaq Composite Index?
  4. Prevail is basically correct. Look at SPX on the 27th. No gap but futures were already a zillion lower when the NYSE opened.
  5. but obviously this is not the case for the NASDAQ composite, right... do you guys see the 02/27 NASDAQ composite gap?
  6. anyone else wondering about this?
  7. Indices that are largely derivative of NYSE listed are subject to opening prints at various time intervals. If there's an imbalance in IBM and the specialist opens the stock a dollar lower at 9:32 then the index won't reflect IBM's price until two minutes into the session.

    Obviously NASDAQ composite stocks print sooner on "event" days than do NYSE issues.
  8. you would think in this day and age of fast computers, they could do better than that. im not surprised, however - that sounds fishy to me.
  9. anyone else have thoughts on this?