What are the moving averages on the daily S&P cash chart ($SPX.X)?New Era Trader uses the daily S&P charts with the 20, 50, 100 and 200 DMA indicators. The S&P cash index is used on the daily chart because, unlike the futures index, the cash index remains constant throughout history.
The S&P futures price will exceed the cash price by an amount referred to as the premium. The S&P futures contract can be determined by adding the premium at the time to the S&P Cash Index value.
More information can be found in the NET book The Definitive Trading Bible Basic Edition.
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KB » FAQ - Technical
KB » FAQ - Technical
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