Utility ETF Signaling Near-Term Low In Progress

Published 06/18/2015, 03:48 AM
Updated 07/09/2023, 06:31 AM

My near-term work on the Utilities Select Sector SPDR ETF (NYSE:XLU) indicates that Tuesday's unconfirmed, new-corrective low at 42.21 followed by an upside reversal, with follow-through strength yesterday morning argues strongly that a near-term low has been established-- and that a recovery rally is in progress that projects into the 44.00 area.

That said, however, XLU needs to do considerable work to form an intermediate-term bottom, which will require a base-building period between 42.00 and 44.00, ahead of what should be the initiation of a multi-month rally period.

Daily XLU - Utilities SPDR Fund ETF

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