Market Barometers: A Look at Stock Indexes and How They Work


You may not need a weather man to know which way the wind blows.

But in the financial world, you do need a stock market index to know which way the stock winds are currently blowing. That’s why the broad market indexes are quoted daily by virtually every media source as a barometer of the state of the overall market.

How do these market indexes work and what are they telling you?

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