How the ES Emini Relates to the S&P

9:18 sportsrep3: This may seem like a basic question, but what are the movements of the ES based on? I know its linked to the S&P, but is there a percentage based weighting? Sometimes they are up different amounts. Also with the huge moves we have at some news times, does this mean that some people are trading the "actual" news using the ES, rather than jumping on the movement like some of us do at news time?

09:40 scooter4: If s/r is asking why the delay in posting or 'catching up' of the index, then if the orders are placed with the specialist instead of on the superdot system then there is a time factor in filling the orders by the specialist so the index will not look like it is where it should be in relation to the futures even though the actual bid and ask are where they should be but no trades have actually occurred to change the index.

09:42 @Buffy2: thanks -- think is he also looking for the relationship

09:43 scooter4: Direct relationship cash to futures, the difference being the time value of the dividend stream and cost of carry. ER/AB closed that gap at 849.60 from 2 days ago that it didn't get yesterday

09:49 scooter4: s/r the difference in where the premium is , is due to traders profit motive. Buy and sell programs are executed where different traders believe they can make money and different traders have different ideas and costs of where they should execute the cash versus futures trades. For example some make money at +5.60 or some can make money at +5.40 etc. So it can move back and forth until the profit motive ,greed and fear take hold

09:50 @Buffy2: thank you