SPDR Dow Jones: DIA ETF has formed a rare bullish pattern

The SPDR Dow Jones Industrial Average ETF (DIA) stock price has done well this year. It has risen by about 2.42% this year and by over 7% in the past 12 months. The fund has underperformed the other popular ETFs like the SPDR S&P 500 and Invesco QQQ. 

Tech stocks lead

The SPDR Dow Jones ETF has lagged the other two major funds because of their exposure to technology companies. Indeed, tech companies in its funds have been the top-performers this year. Salesforce stock price has soared by over 57%, making it the leader in the fund.

Salesforce, the biggest CRM company, has done well as the management implements a turnaround after it came under activist pressure. Some of the top activist holders in the company are Elliot Management, Starboard Value, Third Point, and Inclusive Capital.

Apple stock price has jumped by over 44% this year as investors bet that its growth will continue. The shares jumped recently when the company introduced a new category in the sector. It launched a virtual reality headset that could disrupt the industry.

Microsoft is the second-best performing stock in the SPDR Dow Jones ETF as it jumped by more than 39%. The company has become one of the top artificial intelligence bets this year due to its partnership witth OpenAI, the creators of ChatGPT.

Intel stock price has risen by over 29% this year as demand for semiconductors has risen. However, the embattled company has underperformed other top semiconductor companies like AMD and Nvidia. Nvidia has seen its market cap grow to over $1 trillion.

Other best-performing companies in the Dow Jones are Cisco, American Express, McDonalds, and Visa among others.

There have been some spectacular laggards in the Dow Jones index. Walgreens Boots Alliance has seen its shares drop by 235 this year. As I wrote here, the company’s growth and profitability have worsened in the past few months. Other top laggards in the DIA ETF are 3M, Amgen, Chevron, UnitedHealth Group, and Goldman Sachs.

SPDR Dow Jones ETF stock price analysis

The daily chart shows that the DIA ETF has been in a slow bullish trend in the past few months. It has risen by over 20% from the lowest level in 2022. The stock has moved above the 50-day and 25-day moving average. It has also formed an inverted head and shoulders pattern.

The stock is at an important resistance level since this was the highest point in January, February, and May. Therefore, the outlook for the stock is neutral with a bullish bias. More upside will be confirmed if the stock rises above this month’s high of $345.