Saturday, August 26, 2006

Don't let S&P 500 fool you

SPX:

Over 50 % of stocks in the S&P 500 Index are highly influenced by the top 50 Mega Cap.

A key detail to recognize when analyzing US markets. Looking at the RSP (S&P equally weighted index) one can observer the down trend

Defensive leadership and shift towards higher liquidity serve as reasonable for explain the S&P strength following a broad market correction on May 2006.

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