Indices to track broader market?

Discussion in 'Technical Analysis' started by musicgold, Apr 30, 2009.

  1. musicgold



    The list at the end of the message shows various sector indices I have been using to gauge the general trend and the health of the broader US equity market (using technical analysis). I am not sure whether they are appropriate and whether they cover all the important sub-sectors of the economy.

    1. Could you please suggest any changes to the list?
    2. What is the better tool to track these sub sectors of the economy, indices or ETFs based on the indices?



    ----------- List -------------------------------
    Amex Airline index
    NASDAQ Transportation Index

    Philadelphia Bank Index
    Amex Broker dealer Index
    NASDAQ Insurance Index

    Dow Jones US Chemical Index
    Morgan Stanley Commodity Related Equity Index
    AMEX Natural Gas Index
    Amex Oil Index
    Philadelphia Oil Services Index

    Amex Computer Technology Index
    Amex Disk Drive Index
    Amex Computer Hardware Index
    Interactive week Internet Index
    Philadelphia Semiconductor Index
    Amex North American Telecom Index

    S&P Healthcare index
    Amex Pharmaceutical Index
    Morgan Stanely Health Care Product Index
    Morgan Stanely Health Care provider index
    Amex Biotechnology Index

    Dow Jones US Paper Index
    Dow Jones REIT Index
    S&P Retail Index
    Philadelphia utility Index
  2. 1) What you have is sufficient.
    2) You could get rid of all of those and just focus on the S&P-500 and not get hung up on sectors. You won't have to waste your time waiting for everything to "line up at the same time" as a means of signal confirmation.
  3. musicgold