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Technical to be done on Cash or ES future directly?


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Technical to be done on Cash or ES future directly?

  #1 (permalink)
 KomodoDragon 
Cape Town South Africa
 
Experience: Intermediate
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Hello Guys,

I have a very simple question, when trading the ES, is it better to do the technical analysis on the ES future itself or the underlying the SP 500? Is there an advantage having the levels on the cash market then applying the carry spread or its best to do it directly on the ES chart? I was wondering if the ES chart contain does not contain too much noise compared to the cash market.

Thanks for your answers

KMD

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 Fat Tails 
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  #4 (permalink)
tennon
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There is the problem of transferring support and resistance levels between contracts, or if trading the SPY, referencing across dividend periods.

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 Fat Tails 
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tennon View Post
There is the problem of transferring support and resistance levels between contracts, or if trading the SPY, referencing across dividend periods.

This is true, but as ES only rolls every 3 months, and as long as the differential between the front month futures contract and the cash index remains small, it is not much of a problem.

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Last Updated on April 15, 2014


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