What is the PREM indicator? (it's claimed to work 90% of the time)

Discussion in 'Technical Analysis' started by IronFist, Jul 16, 2008.

  1. Oh wait I wonder if they mean $PREM
  2. FROM:

    The "premium" (PREM) or "spread" is the difference between the most active S&P 500 Stock Index Futures Contract (the spoos) minus the actual S&P 500 Stock Index (cash). That difference, which usually ranges between $5.00 to $-5.00, and slowly decays or rises as we reach the S&P 500 Futures Contract expiration, is what program trading is based on. When the PREM difference rises to a certain execution level, "buy" programs kick in.