The Nasdaq and the Dow are now trading in a way that was evident just before the internet bubble burst
The U.S. stock market is experiencing an unusual number of mixed trading sessions, in which one major index closes higher and another finishes lower. This is not a sign of a healthy market. That’s why the market’s big drop on the Friday after Thanksgiving was perhaps not as unexpected as it otherwise appeared.
Consider the divergences between the Dow Jones Industrial Average DJIA, -0.17% and the Nasdaq Composite Index COMP, -1.92% over the four trading sessions before Thanksgiving. On each of those days, one of these indices closed up while the other closed down. On average over the four trading sessions, there was a one percentage point difference in their returns.
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