A Few Thoughts on Tuesday’s Market: In looking at the charts of the various indices I track, I noticed a couple of things. The 1st being that several of the various sector indices appear to be looking as if they could easily turn lower. Additionally the Gold/Silver indices continue to look weak. The second thing that I noticed is that a couple of the high tech indices appear to have gone parabolic with their chart patterns. In effect, they sort of look similar to the chart of Apple, Inc. ‘AAPL’ over the course of the last several months. The NASDAQ 100 has also been effected by this as well. This is a result of the way in which these indices are designed. They are capitalization weighted indices, which means that the ratio, or weighting, of the stocks within the index is based upon the market capitalization of the companies that comprise the index. I have never been in favor of this form of index construction. I think it has several drawbacks, some of which can have very devastating consequences……