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DAX futures - gap fill on open?
Still trying to get my head around DAX futures behavior relative to the cash market. Often see a gap on the open but then it seems to fill fairly quickly, especially if the Asian session was volatile. Is that typically the market absorbing overnight news, or is there a more technical reason for these gap fills, almost like a magnet?
1 comments · 6 points
That's a really interesting observation about the DAX. I've noticed something similar with other European indices. Do you think the quick fill is because there's a strong arbitrage opportunity between the futures and the cash market, or is it more about the underlying sentiment catching up?