It’s been a tough environment for the Utilities Sector.
The ETF Utilities Select Sector SPDR® Fund (NYSE:XLU) has underperformed for months and really stunk it up in recent weeks.
Looking at the chart below, you can see that XLU declined 19% in 2020, tagging its uptrend line at (1) before rallying sharply. Fast forward to today and we can see that XLU declined nearly 15% at (2) while testing its rising trend line and lateral support at (3).
The decline looks to be a bullish setup as long as XLU stays above support at (3). Are stinky Utilities ready to reverse higher?
If Utilities break through support on the downside, $XLU sends a negative message to the S&P 500.
Which stock should you buy in your very next trade?
With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.
In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.
With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.