Plot the ratio of SPX to SPY and most would expect a fairly constant ratio around 10:1 to pop up. But the chart itself shows the same pattern - a quarterly reset starting at about 10.02 and then ratio decay to about 9.97. Last week we were trading 9.96 on average but at end of day Friday we popped to 10.02, right on time at options expiration..
Keep the ratio reset in mind as you do "math in your head" while studying the S&P 500 chart and pick support/resistance numbers for SPY trades.
Keep the ratio reset in mind as you do "math in your head" while studying the S&P 500 chart and pick support/resistance numbers for SPY trades.