WTF Chart of the Day: Dow Component Changes On Sep 20, 2013
Dow is going to have another major shake up on September 20, 2013. Since component changes is such a rare event, its impact on the market is profound. Here are the charts of Dow over the last 4 component changes.
September 24, 2012. Down 1100 points.
June 8, 2009. Down 700 points.
September 22, 2008. Down 3600 points.
February 19, 2008. Down 800 points.
As you can see, the short term impact on Dow right after component changes can be quite bearish.
Do you think we will have an exception this time?