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Steve,
There is ZERO correlation between overnight futures prices and the next
day's close.
It usually only affects the OPENING prices for the next day.
Claud
Steve Dugas wrote:
Hi- Could
someone answer a quick question I have about the early morning futures
quotes on CNBC. I am fairly new to trading, and I still work for a living,
placing my orders in the early morning before I leave for work. I have
recently started turning on CNBC to get the overnight numbers for the Dow,
Nasdaq and S+P futures before deciding whether to place any trades that
day. I understand that, in general, an overnight rally in the futures prices
means that the markets are likely to open higher, and vice versa. My question
is (assuming there is no market-moving news during the course of the day),
do these numbers provide any insite into whether the markets are likely
go on and close higher on that day, or am I better off not trying
to read anything into it? - i.e., Is there any correlation at all between
the overnight futures and the next days's close? Thanks very much!
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