A Tale of Two Markets

2016-12-01_15-41-46It is common to see the DOW, S&P 500, and Nasdaq move in tandem with each other.  The correlation is helped impart by the popularity of market ETFs such as DIA, SPY, and QQQ. However lately I have noticed a divergence between the markets, particularly since the November 7th presidential election.  It is my perspective that the various indices are diverging since they are weighted differently among industries that are considered the winners and losers.  As for today we saw a 0.35% gain in the DOW but saw the Nasdaq far 1.36%.  Let’s take a closer look.

Gains in both oil and banking are helping prop up the DOW.2016-12-01_15-43-00-oil2016-12-01_18-27-37

Declines in technology and healthcare are weighing heavy on the Nasdaq.2016-12-01_15-43-272016-12-01_18-26-28

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