So today the Dow dropped another fifity points

[nadinbrzezinski]

ok, that is not that impressive... except that it is now under 13K... and that is a psychological barrier.

And it continues

[Selatius]

1. The DJIA is still overvalued, IMHO. I expect further decreases in the coming weeks.

And I don't think the trend will change for at least another six months if not longer, especially given record high oil prices, a collapsing housing market/credit crunch, inflation with food prices, and increasing war fears with Iran.

However, as far as matching market fundamentals, the S&P 500 is more representative of the economy at large. The DJIA is more representative of large institutional investors with the 30 big-cap stocks, not typical of more middle class investors with a more representative basket of 500 stocks.