The recent move to new highs by the S&P 500 was not led by the utilities sector (XLU) which has been one of the leading sectors all year. In fact, the XLU is now back down under its 50-day moving average with a pattern that creates a very well defined trade.
Additionally, one of the sectors that has been languishing this year, XLF, had significant breakout along with the S&P 500. It’s not really a market leader yet, but in a market that often seems to defy logic, a rotation out of XLU and into this sector breaking out would make a lot of sense.
Video Length - 00:06:36
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