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To: Heg Heg who wrote (39721)	4/15/1998 10:18:00 AM
From: Kevin	Respond to of 58727

Hi Heg. >>> If you have the figures at hand, can you make a comparison between the NDX and say financial? So if money flowed from the financial sector into NDX so that the NDX doubled, how much would the financial sector drop? <<< If institutions pulled $985.7 billion from the S&P financial stocks to buy the NDX basket and double it's value, it would drop the SPX financials index to 54.32 from 139.90 As you see the impact is much greater than in the comparison with the transports. >>> And is financial effectively BKX + XBD?? <<< IMO, I would compare the S&P financials to the BKX and stay away from the XBD for two reasons: 1) the financials vs. the BKX shows very similar performance on short term daily charts as well as 5 year weekly charts when both indices are normalized to 100 and layed over top of each other. 2) the XBD is an equal weighted index, unlike the S&P financials and the BKX, which are both cap-weighted. You would be comparing an apple to an orange. Hope this helps.