Monday, May 12, 2008

Disconnect

Why the disconnect.Friday was a strange day for the S&P 500 and its derivative products.

The S&P itself was down 0.69 percent while the Spyders were down 0.15 percent and the e-mini futures were down 0.25 percent.

Most times the derivatives will follow the underlying very closely, but because they have separate supply and demand markets, they can have varied performance.

This variance doesn't usually last very long.

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