Did the DOW not have a larger number of stocks a while back?? With 30 I'll say it again a rogue index.. For an index so followed so many are at the whims a few.. Today a classic case.. Basically DOW saved yesterday and Friday's lows while SP did not even come close. 30 is way too small for such a key index. Probably pointless thread as it won't change anyway.
In addition to being a narrow index, it is also price weighted (as opposed to market cap weighted like the S&P). So something like MCD has more pull than, say, INTC even though MCD has half the market cap...
It's only following is the bubble heads on CNBC and their retail audience. The Dow has no significance as a benchmark anywhere else.
They only follow it because it is a bigger number. It is much more impressive to say market is up or down 400 points then to say it is up 40 on S&P for example.
Dow was more important when this song was out,, some things change and others do not. The world is the same as when this song came out, actually worse because we have quants and unregulated investment banks. .. http://www.youtube.com/watch?v=bmysVoRBgyA&feature=related
DOW is not the market benchmark, SPX is the market benchmark. I never look at DOW for Technical Analysis I look at SPX. DOW is for common public to undertand something about stock market.