I suppose that when the NASDAQ index opens around 50 up, say, after the futures have gone up around 50 overnight while the US market is closed it’s just a coincidence is it? You don’t think it’s at all possible that the movement in the futures has had any influence?
Here is the formula for the Nasdaq. Please note there is absolutely zero component in the formula that accounts for the futures market. What you are observing is participants anticipating news and reacting on that before the market opens. It is NOT some special correlation as you are referring to. The common component between the futures and the underlying is news and the anticipation of that news.
The NASDAQ Composite Index is a market capitalization-weighted index. The value of the Index equals the aggregate value of the Index share weights, also known as the Index Shares, of each of the Index Securities multiplied by each such security’s Last Sale Price1and divided by the divisor of the Index. The divisor serves the purpose of scaling such aggregate value to a lower order of magnitude which is more desirable for reporting purposes. If trading in an Index Security is halted on its primary listing market, the most recent Last Sale Price for that security is used for all index computations until trading on such market resumes. Likewise, the most recent Last Sale Price is used if trading in a security is halted on its primary listing market before the market is open. The Index began on February 5, 1971 at a Base Value of 100.00.The formula for index value is as follows:
Aggregate Adjusted Market Value/Divisor
The formula for the divisor is as follows:
(Market Value after Adjustments/Market Value before Adjustments) X Divisor before Adjustments
Six versions of the Index are calculated:
The price return index in USD (Nasdaq: COMP) is ordinarily calculated without regard to cash dividends on Index Securities.
The total return index in USD (Nasdaq: XCMP) reinvests cash dividends on the ex-date. The total return index in USD was synchronized to the value of the price return index at the close on September 24, 2003.
The notational net total return index in USD (Nasdaq: XCMPNNR) is designed to reflect a net total return index reinvesting 70% of cash dividends, and factors in a deduction based on an indicative 30% tax rate. The notional net total return in USD index began on December 21, 2017 at a base value of 1000.00.
The price return index in CAD (Nasdaq: COMPCAD) is ordinarily calculated without regard to cash dividends on Index Securities. The price return in CAD index began on December 21, 2017 at a base value of 1000.00.
The total return index in CAD (Nasdaq: XCMPCAD) reinvests cash dividends on the ex-date. The total return in CAD index began on December 21, 2017 at a base value of 1000.00.
The notational net total return index in CAD (Nasdaq: XCMPCADNNR) is designed to reflect a net total return index reinvesting 70% of cash dividends, and factors in a deduction based on an indicative 30% tax rate. The notional net total return in CAD index began on December 21, 2017 at a base value of 1000.00.