Have Bullish Utilities Investors Run Out Of Steam? (XLU)
February 11, 2010 4:04 PM
While the utilities sector joined the rest of the market in its rebound from the March 2009 lows, it would seem that someone has since flipped the group's rally "switch" to the off position.
Since peaking in mid-December 2009, the Select Sector Utilities SPDR (NYSE: XLU) has fallen nearly 11%, dipping below prior support at its 10-week and 20-week moving averages in the process. The exchange-traded fund (ETF) is now in danger of breaching key support in the 28.50 area.
This region has provided a floor for XLU since July 2009, and a breach could signal that there is more selling pressure left to be unwound. What's more, the XLU has underperformed the struggling S&P 500 Index (SPX) by about 4% during the previous 40 trading days.
-> Read more.
