Hey Traders, 

In future newsletters, I will be covering a very important topic no one talks about when it comes to trading. 

“How the trading hours after the close (5PM - 9:30 AM Eastern) in the S&P 500 can help you trade the SPY during the Regular Trading Hours (930AM to 4PM Eastern). 

The ES (S&P 500 Emini Futures)  and SPY have very similar price action. 

See the chart below

The S&P 500 Emini Futures (ES) is on the left and SPY is on the right. 

We are looking at a 4 hour chart. 

This means that it takes 4 hours for each bar to form. 

What’s also interesting is that the ES trades overnight during electronic hours. 

So the ES market is open 23 hrs. The only time it closes is from 5PM - 6PM Eastern, Monday - Friday. 

Below, you can see 2 charts, both are 30 min charts.

On the left, you have the ES chart for the RTH (regular trading hours, 930am to 4PM Eastern). 

On the right, you have the ES chart on the ETH (electronic trading hours, 23 hours) . 

I have highlighted the trading after 4PM so you can see the price action after the 4PM close . 

You can also see the regular trading hours on the left. 

Finally, let’s look at all 3 charts together. 

From left to right, you have the S&P 500 Regular Trading Hours, S&P 500 Electronic Trading Hours and SPY charts. 

You can clearly see the similar price action during the Regular Trading Hours, 930 AM to 4PM Eastern highlighter in red. 

To get the most out of trading SPY daily, we have to know where it's potentially headed. 

Watching the overnight futures movement and applying it to our SPY trades is the best way possible to get the most out of our daily SPY trades. 

There are a few reasons why price moves. 

One of the main reasons is to trade to old highs and lows. 

In the coming newsletter, I will go over which highs and lows are important and how these levels can help you form an overall bias on where price is potentially headed. 

Voz.