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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: russwinter who wrote (45254)11/11/2005 11:19:20 AM
From: High-Tech East  Read Replies (3) of 110194
 
A question to one and all ...

I have often wondered about this, but never have come up with an answer.

The S&P futures, like any futures contact I suppose, fluctuates up and down based on supply (asks) and demand (bids) for the contract itself and not the individual stocks in the index.

In the case of the SP futures, how does the supply and demand for the December futures contract get so closely tracked by the underlying actual stocks in the SPX minute-to-minute?

Do you know where I can read about this without getting lost in long mathematical formulas?

I just want to understand it, not become an expert.

I have traded SP futures for years, but never really understood this.

Thanks in advance.

Ken Wilson
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