S&P 500 price

[nooby_mcnoob]

Not that hard really.

Say, as every stock does AAPL reports earnings after the bell (don't know when they will or if they have already) and they are better than expected. AAPL reprices in AF trading.

So since futures are based off of stock price expectations in the future if the markets believes, even if is it turns out to be erroneous in retrospect, AAPL and other stocks cumulatively should be higher then higher they will go.

Look into fair value/arbitrage/program trading/etc.

Yes but how do you know it is AAPL that should move up and not (say) TSLA that moved the index in the absence of market moving news.

 

[SunTrader]

Yes but how do you know it is AAPL that should move up and not (say) TSLA that moved the index in the absence of market moving news.

I don't. All components in an index get repriced based on the overnight futures move.

It might only be temporary, majority of the time it is, but program buys or sells take place automatically. Futures against stocks. One gets bought, one gets sold till they get "balanced".

 

[murray t turtle]

Bet most don't know - S&P 500 is almost always more than 500 symbols.

"Although called the S&P 500, the index contains 503 stocks because it includes two share classes of stock from 3 of its component companies"

And an ever more glaring number example in the opposite direction is the Wilshire 5000, it currently has 3,637 stocks.

As for what moves index, of course stonks traders never think the futures contracts might have something to do with it.

%%
I though SPY was 505, now , but cant keep up with all those details.
Have to factor in also ;
bid\ ask,
derivatives,
dividends,
HILL\C is right\both + then the combo; for SPY=liquidity leader.
I never trust some of the S&P indexes that show no volume

 

[LuckyMac]

SPX moves per buying/selling in the individual stocks... and you can't buy the SPX.

When money flows into/out of SPY, the ETF manager buys and sells stocks in the SPX. But the amount of flow into the ETF is very small compared to the total amount of flow into the individual SPX stocks. So... theoretically money flowing into SPY could move the index a very small amount.

Perfect explanation, i used to look at lot at NASDAQ too and the heat maps of what was moving it most and how

 

[murray t turtle]

The S&P is the index representing essentially all the broad companies. You answered your own question. It's basically USA.

The Billion dollar question, of course, though, is HOW will it Move,

%%
SPY is still below 200dma= bear down market, as of 12;11 CST+ if you like close prices + i do still a bear for yesterdays close. My comments dont apply to rest of Fed day, even though i usually record close price any day.
Good points on SPY+ USa benchmark, but i do some SPXS+ spxu also ;
but Dow, DIA, sdow, QQQ + IWM are helpful hints on USa market also .

 

[MacBookProHo]

%%
SPY is still below 200dma= bear down market, as of 12;11 CST+ if you like close prices + i do still a bear for yesterdays close. My comments dont apply to rest of Fed day, even though i usually record close price any day.
Good points on SPY+ USa benchmark, but i do some SPXS+ spxu also ;
but Dow, DIA, sdow, QQQ + IWM are helpful hints on USa market also .

Well, it looks like you got the future all figured out,
So go out there into the big, bad, market and make a Million dollar Turtle,

 

[murray t turtle]

Well, it looks like you got the future all figured out,
So go out there into the big, bad, market and make a Million dollar Turtle,

%%
OK; but i don't make market predictions.
Maybe a forecast based on 200dma[ bear trend, SPY] + stuff.
MacBookPro ; i'm rereading again a book = The RULE by Larry ''Mint '' Hite.....................