ES traders key off SPY or SPX ?

Discussion in 'Index Futures' started by aspenboy, Sep 1, 2010.

  1. I'm thinking SPY. Also,any suggestions on how to effectively utilize either of those and/or SPY volume ? Appears to me ES S/R zones match those of SPY. Thx !
  2. trendy


    Neither. FYI, SPX is only updated every 15 sec, that can be an eternity. Just monitor the instrument you are trading.
  3. Thx. Interesting. So the cash keys off the futures in essence ?
  4. trendy


    I believe the conventional wisdom is that the futures lead the cash. Honestly, its not something I have dwelled upon.
  5. No.Heat


    The SPY has dividend payment adjustment that makes the long timeframe charts far from perfect; also many times irregular bad prints that screw with analysis.

    The ES has rollovers so suffers from the same problem, even if your data feed provider does back adjustment do not trust it for long timeframes as every provider use different backadjustment methods.

    Although it is true that SPX updates slowly intraday for long timeframe analysis it's the preferred one because it's continuous.

    Case in point ?

    Use ES for intraday, afterhours, some weeks at most.

    For everything else, use SPX.

    No Heat
  6. Is the original question some sort of joke?