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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Dwight E. Karlsen who wrote (32571)11/6/1999 1:50:00 AM
From: umbro  Read Replies (1) | Respond to of 99985
 
The DJIA divisor is 0.20435952 as of Nov. 1, per Dow Jones.

So, hypothetically, if MSFT dropped 9 points (about 10%), it woould subtract 9/0.20435952 => 44.04 points on the DJIA. The inverse of the divisor is 4.8933, a little higher than 4 pts per Dow stock move.