Several mistakes

1. Dow is a price weighted index. The two stocks having the biggest impact on Dow are IBM and MMM.

2. Just because Nasdaq stocks make up a small percentage of S&P weightings, it doesn't they are not correlated. Correlation is computed using their returns and variance over a period. Look up in any corporate finance book for details.

3. Big market trends are not results of manipulations, but always reflect market participants's perception of fundamentals. Big MMs (Mutual Funds and Pension Funds) accumulate mostly for fundamental reasons.