New analysts claim that the S&P 500 provides a better picture of the markets compared to the Dow. Although the S&P 500 obviously has a larger catalog, the Dow is a direct reflection of international capital flows. Look toward the Dow to see where big money is moving.
The S&P 500 is domestic-oriented, and fund managers and institutions tend to focus on this index. The NASDAQ typically reflects retail, tech-heavy, and usually is the last to the peak. Each index offers a completely different perspective. The Dow Jones Industrials is the big money. You will notice that this index leads the way. It is the first out of a key low because it is typically the foreign capital that comes in based on currency. You will also notice the Dow tends to top out first because the big money tends to pull out first also due to currency.
Capital is flowing like never before, and the smart money is on the move. The USD remains the last safe haven, and money is pouring into the US – for now. Look to the Dow for the best international perspective. ©Martin Armstrong
The trend is higher on the DJIA and stops are being trailed to lock in profits. The PA has taken out the August highs and is now looking for liquidity above the double top around March 2022. The idea is always to look to buy a high and sell higher. I would expect the rest of the major US indices to follow suit.
The S&P 500 is domestic-oriented, and fund managers and institutions tend to focus on this index. The NASDAQ typically reflects retail, tech-heavy, and usually is the last to the peak. Each index offers a completely different perspective. The Dow Jones Industrials is the big money. You will notice that this index leads the way. It is the first out of a key low because it is typically the foreign capital that comes in based on currency. You will also notice the Dow tends to top out first because the big money tends to pull out first also due to currency.
Capital is flowing like never before, and the smart money is on the move. The USD remains the last safe haven, and money is pouring into the US – for now. Look to the Dow for the best international perspective. ©Martin Armstrong
The trend is higher on the DJIA and stops are being trailed to lock in profits. The PA has taken out the August highs and is now looking for liquidity above the double top around March 2022. The idea is always to look to buy a high and sell higher. I would expect the rest of the major US indices to follow suit.
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