The 500 companies in the S&P 500 index are all trading companies in the two major stock markets of the U.S. stock market. Almost all S&P companies are the top 500 stocks traded in the United States. The stock index was created and maintained by S&P company.
The S&P 500 index is the second-largest index in the United States. Compared with the Dow Jones index, the S&P 500 index contains more companies, so the risk is more dispersed and can reflect the broader market changes. In addition, compared with the Dow Jones index, the S&P 500 index uses market-capitalization weighting, which can better reflect the actual importance of company stocks in the stock market. After the S&P500 index, there is the S&P 400 index for medium-sized companies and the S&P 600 small share index for smaller companies. The total is the S&P 1500 composite index.
The S&P 500's constituent stocks are chosen by a committee and will be replaced. This mode of operation is closer to the Dow Jones industrial average index, while many other indexes, such as the Russell 1000 index, are strictly based on fixed rules. Although there are also basic rules for companies selected by the SP 500 index, they will be comprehensively considered based on a number of principles to ensure that they are representative enough to show the rise and fall of the American economy.
S&P 500 stock index futures are a market that opens almost all day in 23 hours. Its real opening time is 22 hours and 45 minutes, which can be said to be a market that opens all day.
When the spot markets of Germany, France, and Britain in Europe opened, the trend of S& P 500 stock index futures and spot markets was very passive. Most of the time, the U.S. market followed the German, French and British spot markets up and down.
If the European stock market soared on the same day, the US stock market would jump up and open the day. If the European stock market fell sharply on the same day, the U.S. stock market would jump short and open on the same day. Click here to visit BTCMEX.com.
This has been going on for years. The first thing Mr. Jesse Livermore, who was a big market player in the United States, had to do every morning was to write down the London stock market index on the blackboard before the opening of the U.S. stock market. Because it has a guiding role for us Dow to jump short and open high or low.
Knowing this is a huge advantage for participants in the US market. That is, we can know the possible trend of the US market in advance from the trend of Germany, France, and Britain. Before 11:30 a.m. New York Times, the S&P 500 and Dow Jones Indexes often have no reason to go out of a strong or a paragraph situation. Most of this crazy way is the result of the German and French markets. Therefore, it is of great benefit to the decomposition of the trend of the US market to do a good job of the decomposition of the trend of the German and French markets.
Sometimes Germany and France's spot market in the intraday drop or rise will lead the United States for a few minutes. This is an excellent profit or flight opportunity for investors in the US market. Click here to visit BTCMEX.com.
Please note, that the article is a part of BTCMEX Blog, the views and opinions expressed here are the contributing author’s only, and do not necessarily represent the views of the company.
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