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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.

discuss

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MuffinFlavored|2 years ago

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

Where would you say 80% of the daily trade volume comes from on average?

The powers to be that I can think of:

institutional investors / fund managers slowly reallocating (selling stuff off, buying stuff) daily

high frequency trading algorithms trading shares back and forth to each other in an artificial way to generate synthetic volume/movement

market makers reacting to option chain volume to remain neutral

"hedge funds" / "quant funds" running their algorithm

what do those algorithms look for at the "minute by minute" scale if not things like support/resistance/patterns/volume?

jleahy|2 years ago

In my experience a large % of the daily trade volume comes from me.