Does the Dow lead the S&P500 or is it the other way round?

[Dispassionate]

opinions?

 

[roguetrader]

Not sure if you could look at the relationship quite in that manner. if you did then I'd say the S&P500 leads since it is more reflective of the state of the American markets, not only does it contain more companies that the Dow, but it also contains all the companies that are in the Dow

 

[laptop1]

In my opinion the Nas can lead the Dow, if the nas is up 0.50% and the s&p is up around 0.45% to 0.55% and the dow is lagging at 0.30% expect the Dow to play catch up.

Also the bond market and oil can lead the both s&p and Dow. But it takes time to learn and know what to look for.

 

[ammo]

they used to run in tandem sort of. since the price of oil has risen so quickly and the spus are heavily weighted with oil stocks it can move on data that doesnt have the same effct on the dow . the dow usually moves 7 points to 1 spu point

 

[roguetrader]

since the price of oil has risen so quickly and the spus are heavily weighted with oil stocks

The weightings of the S&P 500 have not changed much in the last few years, as such the rapid rise in oil prices has had little impact, the SPX isn't and nevr was "heavily weighted" in oil. The top 5 sectors by weight on the index accounting for over 70% of the total are Financials, Information Tech, Health Care, Industrials, and Consumer Discretionary.

 

[ammo]

spus and oil

The weightings of the S&P 500 have not changed much in the last few years, as such the rapid rise in oil prices has had little impact, the SPX isn't and nevr was "heavily weighted" in oil. The top 5 sectors by weight on the index accounting for over 70% of the total are Financials, Information Tech, Health Care, Industrials, and Consumer Discretionary.

the s and ps have always been more heavily weighted in oil than te dow in comparison so when oil goes up it hurts the dow more than thes&p im signing off this sight it is overweighted with pissing matches and underweighted in common sense