What is the S&P 500 Indicator?

The Standard & Poor's 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value weighted index (stock price times number of shares outstanding), with each stock's weight in the Index proportionate to its market value. The "500" is one of the most widely used benchmarks of U.S. equity performance. We add the volume of the S&P 500 Index components together on a minute-by-minute basis which now becomes the S&P 500 Indicator, an ideal indicator for predicting future index trends.

Chart 1: S&P 500 (^GSPC) volume chart

Details of the above trades, and the derivatives used for this index can be found in the Detailed Overview section of our site.

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