Dow and the S&P 500

On November 20, the Dow’s ratio to the S&P 500 broke 10-to-1 for the first time in over four decades. What did that mean?
I’m not sure but it did happen to coincide with the market’s bottom. Both indexes have rallied nicely since then.

The black line is the Dow and it follows the left scale. The blue line is the S&P 500 and it follows the right scale. The lines are scaled at 10-to-1.

Posted by Eddy Elfenbein on January 9th, 2009 at 6:36 pm

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