Dow/Nasdaq Ratio Hits a 3-1/2 Year High

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 |  Includes: DIA, QQQ, SPY
by: Eddy Elfenbein

The Dow/Nasdaq ratio closed Monday at 5.428, which just barely passed the peak from August 8, 2006. The ratio is now at its highest level in 3-1/2 years.

I should add that the ratio has been very steady over the past few years. Here's a chart of the ratio going back to 1980:

Over the last 15 years, that ratio has been between 4.5 and 5.5 for 74% of the time.