Index complex
The four index funds — Nasdaq 100, S&P 500, Dow and Russell 2000 — their futures, and three spreads between them.
Inputs
- Small − large. IWM % change − SPY % change.
- Nasdaq − Dow. QQQ − DIA.
- Semis − Nasdaq. SMH − QQQ.
How to read it
A positive small − large spread means small caps are outperforming, usually a sign of broad risk appetite. Semis leading the Nasdaq says the most cyclical part of technology is in demand.
How to use it
Tells you which part of the market is carrying the day: mega-cap technology alone, or a broad advance.
Limitations
One-day spreads. The futures trade nearly around the clock while the funds trade in the session only, so outside hours the futures move first.
In Kereon
Market · Pulse. In percentage points of today's change.
Also called: small − large, small - large, nasdaq − dow, semis − nasdaq, index futures, mega caps, small caps.