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jleahy | 2 years ago

ES trumps the others.

discuss

order

MuffinFlavored|2 years ago

Nice, thanks. I wonder by how much. Here is why I ask:

a lot of technical analysis is done on psychological levels related to (in my opinion) SPY strike prices/SPX strike prices/SPX levels.

Yet, /ES is typically 20 points ahead of SPX. For example, there can be a battle zone of support/resistance at 4900 on SPX, but /ES blew past it a day ago. I wasn't sure if one had more power/prominence than the other.

jleahy|2 years ago

The spread between SPX and ES is purely mechanical. It’s a function of expected future interest rates and dividends over the remaining life of the future.

There is no such thing as support/resistance in reality.