It is superficially "asinine" because it is so narrow. However, the DJIA, S&P, Russell, etc all track/correlate each other.
> Look at any other index instead.
Or better yet, inlay the graphs of DJIA, S&P, Russell, Nasdaq, etc on the same chart for comparison. You'll see that the graphs all look similar. Meaning they all go up and down at around the same times.
It would seem that the broader indexes would better reflect the market as a whole. But in the real world, DJIA does good enough a job as the S&P, Russel, etc for a bird's eye view of the market.
It is superficially "asinine" because it is so narrow. However, the DJIA, S&P, Russell, etc all track/correlate each other.
> Look at any other index instead.
Or better yet, inlay the graphs of DJIA, S&P, Russell, Nasdaq, etc on the same chart for comparison. You'll see that the graphs all look similar. Meaning they all go up and down at around the same times.
It would seem that the broader indexes would better reflect the market as a whole. But in the real world, DJIA does good enough a job as the S&P, Russel, etc for a bird's eye view of the market.