Have been watching the market on www.bigchart.com for some time. On it they show both the DJIA and the Naz charts at the top of their webpage.

One thing that I have noticed is that both of them seem, for the most part, to ride the same ups and downs in trending. At the end of todays trading, you could superimpose one on top of the other and the trends would be real close to matching, even how they move up at certain times of the day.

I am by no means an expert or a reasonable facsimile of a rank amature. I am just looking for some guidance as to why these two seem to be manipulated.

-- idunno (idunno@whoknows.com), March 10, 2000

Answers

"why these two seem to be manipulated."
To keep them from crashing?

News information available causes investors to react the same on each exchange?

-- Possible Impact (posim@hotmail.com), March 10, 2000.

Lots and lots of money is in various Index Funds, which buy all the stocks in the Dow, S&P, or Nasdaq. Money flows thus have the effect of causing the indices to track each other.

However, I think you're looking at too short a time frame. The NAZ broke loose of the Dow long ago, while the S&P (which has lots more tech than the Dow) falls somewhere in between. We've seen many, many days where the Dow and NAZ have moved in complete opposition, rather than tracking, and a look at a 3 month chart makes that crystal clear. My sense is that we will see the indices again in opposition quite soon, but it will be the NAZ going off Splash Mountain this time.

-- DeeEmBee (macbeth1@pacbell.net), March 10, 2000.

Back on the old TimeBomb I posted a response wherein I conjectured that the NASDAQ would reach 5000. Well, it did. However, I never posted that it would ascend higher to 6000. And look at all the new prognosticators who are suddenly yelping for this higher mark. The Wall Street Journal did a bullish article today in Section C. Wherein will the *irrational exuberance* stop? Not in bullish print at least.

The DOW is weak and has not climbed over the 10,200 support level. It tried but could not close there. So now it's below 10,000. Who cares? Certainly not the NASDAQ riders!

Don't forget that Ben, who posted his prediction in the Gold Eagle forum earlier this week, has bet his reputation on his view that the DOW and NASDAQ will begin to correct SEVERELY next week. He has been looking for a high in the NASDAQ beginning with last Wednesday until next Monday. After that high is reached, the natural selection of less monetary import will prevail.

Will Ben be vindicated? Stay tuned...

-- dinosaur (dinosaur@williams-net.com), March 10, 2000.