Market disconnect: ES & SPY

Discussion in 'Trading' started by FireWalker, Feb 10, 2018.

  1. SPY/SPX's much lower low:


    Reminder to those unaware: SPY and ES are calculated and managed very differently. SPY is a closer approximation of the 500 stocks in S&P's list (or at least it's supposed to be).
  2. samuel11


    Sorry, what are you talking about? ES is a future contract and its value fluctuates away from spot because of interest rates, funding, and dividends...
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  3. Firewalker, are you saying there is a disconnect because the futures did not break through their 200 day MA like the SPY did? Question - I would guess that such a thing was relatively common as the futures are often off of the spot price, no? Not sure though. By the way, isn't it maybe a moot point at least temporarily, as the spot price bounced off the 200 day MA and shot way up (maybe consistent with the futures not falling as much)? Thanks!
  4. No need to get overly technical. or anal. o_O

    but the SPY/SPX/DOW/ES are all essentially the same thing,
    They all move in sync, and represent 'The Market.'
    Overnight likes this.
  5. I think the most interesting question - has there been any backtesting as to, when futures and spot diverge, which is typically "right" - i.e. does more often than not futures pull back more towards spot or spot more towards futures?
  6. Overnight


    Me thinks you might be the one with the disconnect? Where do you see a disconnect between ES and SPX?

    As of close Friday they differ by 2 ES points? 8 ticks? That is not a disconnect. That is flowing mojo.
    Last edited: Feb 10, 2018
  7. srinir


    I think you are comparing two different time frames. ES is daily and SPY is 240 min (I think). That is why 200 ma looks so different
  8. Indeed. The horizontal axis (time axis) on both charts is very different.
    tommcginnis likes this.
  9. Lol 2 different charts bruh. Like they said
    tommcginnis likes this.
  10. JackRab


    How the hell is SPY closer to the real SP500 index level that the actual SP500 index level?

    The stuff I read on ET is sometimes astonishing...
    #10     Feb 11, 2018
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