@Forged Can you pls print a similar chart of S&P 500? ($SPX). I could, but I don't want to dominate my daily number of Posts
People know what I think of the DOW. Apart from being so narrow, (30 stocks), it's not MC weighted, the index goes up a similar amount (8-9 points: published daily in the WSJ) for each stock dollar move.
So, if a laggard like IBM (15 successive qtrs of declining revenue) goes up / down a dollar, the index moves that many points....same for AAPL, CAT, GS, whatever.
I've no doubt - I know it - the ASX /200 is cap weighted, you can easily get a list of their weighted contributions to the index. And I'm sure other indices here, too.
Also, the S &P 500 is the national benchmark against which all US Mutual Funds (here called Managed Funds?) are evaluated, judged (and they have historically fall short, hence the popularity of Index Funds). That's where most (all) of Americans' money is, their retirement savings, in Mutual Funds. These companies, Vanguard, Fidelity, T.Rowe Price, Putnam, Franklin-Templeton (I just read Black Rock is the largest Asset Manager, but unclear what that means) - all of them each mange hundreds of billions, if not trillions.
It's quite possible the result (DOW vs S&P 500) will be very similar, but that's my recommendation. Forget the Dow ...but not its twin sister, the DOW Transports, $TRAN, together, the basis of "DOW Theory", the very first TA. But you knew that.
Re the Transports, WEEKLY Chart - read Dante , in particular, The Seventh Circle of Hell
