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Analyze, Profit From IBD's Market Charts.(B)

Investor's Business Daily

| August 03, 2004 | COPYRIGHT 2004 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Analyzing the price and volume changes in the major market averages each day is essential to successful investing. They reveal major tops and bottoms in the stock market.

Most stocks follow the general market's trend. They tend to rise when the Nasdaq, S&P 500 and Dow industrials move higher. They tend to fall when the major indexes trade lower.

Therefore, it's vital to understand the market's direction, as well as secondary indicators that are included on this page. You do not want to buy stocks when the averages are in a downtrend. You do not want to be in cash or betting stocks will go down in price when the Nasdaq, S&P 500 and Dow indexes are in an uptrend.

The Big Picture column on A1 helps you spot major market turns and judge the overall health of the stock market. Use it in conjunction with the General Markets & Sectors page.

Today's general market ...

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