Comparing the S&P 500 vs Dow Jones by price or past returns rarely changes a trading decision. Comparing where each stands in its intermediate cycle does. When the Dow recovers while the S&P 500 and Nasdaq roll over, leadership is rotating rather than broadening, rallies in the weaker index face renewed selling, and cash is a reasonable position. This article covers the 2000 and 2023 splits and what it takes for all three indices to confirm a lasting advance.
