The SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA), the tracking exchange traded fund for the Dow Jones Industrial Average, is up 5.10% to start 2019, but some technical analysts see the potential for near-term selling pressure following DIA’s recent rally.

DIA was recently pressured by slack earnings from heavy machinery maker Caterpillar (NYSE: CAT) and could face more near-term pressure if Apple Inc.’s (NASDAQ: AAPL) Tuesday earnings report is worse than expected.

Caterpillar Chief Financial Officer Andrew Bonfield pointed out that China made up between 5% and 10% of the company’s total sales and 10% to 15% of its construction unit’s revenue. The company calculated that the impact from tariffs on steel and other materials was about $40 million in the third quarter and over $100 million for the full year.

“The rapid-fire rebound in stocks from the worst of their late-December lows slowed a bit last week, just as the small-cap Russell 2000 Index (RUT) closed in on a double-digit percentage return for 2019,” according to Schaeffer’s Investment Research. “But the Dow Jones Industrial Average (DJI) outperformed its equity benchmark peers for the period, ending Friday up 0.1% from the prior week’s close, while the S&P 500 Index (SPX) fell 0.2%, the RUT advanced 0.02%, and the Nasdaq Composite (IXIC) edged up less than 0.01% on the holiday-shortened week.”

DIA ETF Drivers

Boeing Co. (NYSE: BA) is the largest Dow component at just over 10% of the benchmark’s weight. UnitedHealth Group Inc. (NYSE: UNH) and Goldman Sachs Group Inc. (NYSE: GS) combine for nearly 13% of the index’s weight.

DIA currently resides 1.56% below its 200-day moving average. It has been over a month since the fund closed above that line.

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