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

To: Doug who wrote (67033)	1/17/2001 2:44:14 PM
From: HairBall	Read Replies (2) \| Respond to of 99985

Doug: Have you been reading this thread the last week or so? I do believe I have seen similar charts posted on this thread lately...<g> By the way, since the INDU now contains components from both the NYSE and NASDAQ, I would recommend comparing the composite indices from the two exchanges in the future. Regards, LG

To: Doug who wrote (67033)	1/17/2001 2:53:09 PM
From: Sweet Ol	Respond to of 99985

>>L.G: The NAZ and DJIA always had a historical correlation until we had the Bubble. The following chart captures that bubble. :http://www.siliconinvestor.com/research/comp_chart.gsp?cs=IN... << The divergence is even more interesting if you change that chart to 100 months instead of 100 weeks. What you see is that they tracked very closely until 1995, but did not begin to separate widely until 1997. Then in the middle of 1998 the Naz rocketed away from the Dow. Today, we still have not erased the divergence. About 60% of the difference has been wrung out. Now the question is - Is there more air to be let out of the bubble, or has there been a permanent paradigm shift? Ah, this is what makes markets! Best to all, John