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?