Can SPY be manipulated?
So the Standard and Poor’s 500 is what many average people on the street would use to evaluate the strength of the economy, and I’m going to be honest I’m not an expert on it, so pardon me if I say something silly.
So most of us understand (or think we understand) what moves an instrument’s price, and it’s the buyers and sellers who click market order which takes the next available limit order and that sets the price.
Anyways, whether that’s right or wrong, it leads to the next known idea which is market makers and HFT’s that make up a substantial amount of the liquidity and orders in the market can “move” and manipulate price.
My actual question is, does that mean an index such as the SP500, its price and the futures of it, are more or less immune to the market manipulation, because market makers would have move the price of many other securities to actually affect the index?
I apologize if it’s a dumb question but I couldn’t find anything answering it online.