The S&P 500 futures trade in quarterly contracts. The current quarter, which is the March contract, is coming to an end. When one contracts ends, the next quarterly contract begins but this happens over a week-long time span. This is called "Rollover."
Thursday the 10th (when you read this) is the second Thursday of the month that starts the rollover week. On that date the next quarterly contract (June in this case) becomes the "top step" contract...or the front month.
From the second Thursday of the month to the third Friday of the month, the roll "happens." That is to say, long term traders begin exiting from the March contract and reenter in the June contract. Moreover, all new long term positions will trade June starting in the morning. Although the volume will be split between the two contracts through next Friday, every day will bring more volume to June.
Change all of your charts to the June contract before the morning's open.
Thursday the 10th (when you read this) is the second Thursday of the month that starts the rollover week. On that date the next quarterly contract (June in this case) becomes the "top step" contract...or the front month.
From the second Thursday of the month to the third Friday of the month, the roll "happens." That is to say, long term traders begin exiting from the March contract and reenter in the June contract. Moreover, all new long term positions will trade June starting in the morning. Although the volume will be split between the two contracts through next Friday, every day will bring more volume to June.
Change all of your charts to the June contract before the morning's open.
Trade Date: 3/9/11
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