By InTheMoneyStocks on August 8th, 2010 2:20pm Eastern Time
The SPDR S&P 500 ETF (NYSE:SPY) gained nearly 2.00 points for the week closing on Friday August 6th. This leading ETF has now gained over 11.00 percent since early July. It is important to realize that the Dow Jones Industrial Average is a price cap weighted index as opposed to the S&P 500 Index which is market cap weighted. Therefore, if a higher priced stock increases more than a lower priced stock in the DJIA index despite the size of the market cap the index will increase. The current pattern on the weekly chart could go either way at this moment. This popular ETF has been trading higher for six weeks now and often a pullback will occur after such a large point move and percentage gain. The DIA will have some weekly chart resistance around the current level at $106.70 and more around $108.50 area. Utilizing these levels along with the following levels and analysis and you will remain on the right side of the market.
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