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The Divergence Between The Dow And S&P Is Fixing Itself (DIA, SPY, AAPL)

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dow jones common

Most of the time, the Dow Jones Industrial Average and S&P 500 will move together roughly hand-in-hand.

However, the gains in the two indices have been diverging noticeably lately.  Year-to-date, the Dow is up 8 percent while the S&P is up around 12 percent.

Much of the discrepancy can be explained by Apple, which is the driving force in the S&P 500.  Apple isn't even in the Dow.  And Apple is up 42 percent since the beginning of the year.

But this shouldn't be considered a weakness in the Dow.  On the contrary, we've argued that Apple's exclusion from the Dow is exactly what makes the index great.

Here's a chart from the folks at Bespoke Investment Group.  You'll notice that the divergence is beginning to fix itself.  Why?  Because Apple has been selling off.

chart

SEE ALSO: JPMORGAN: One Of These 15 Companies Could Be The Next Apple >

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