Utilities SPDR ETF (XLU) In Danger Of Breaking 9-Year Support Line

Share This Article
January 11, 2018 6:19am NYSE:XLU

From Chris Kimble: The Utilities ETF XLU has had a rough go of it the past two months! Below compares XLU to the S&P 500 over the past year.

Sometimes Utilities are viewed as interest-sensitive assets. XLU was keeping pace with the S&P over the past year (sometimes ahead) until mid-November last year, where they started heading south, backing off nearly 10% from highs.

Below looks at the chart of XLU over the past 18-years:

The recent softness in XLU is testing 9-year rising support at (2) above. Support is support until broken.

If XLU breaks support at (2), selling pressure could take place in this sector and they could be sending a message that interest rates could be moving higher.

The Utilities SPDR ETF (XLU) was unchanged in premarket trading Thursday. Year-to-date, XLU has declined -3.68%, versus a 2.72% rise in the benchmark S&P 500 index during the same period.

XLU currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #8 of 12 ETFs in the Utility ETFs category.

This article is brought to you courtesy of Kimble Charting Solutions.

9 "Must Own" Growth Stocks For 2019

Read Next

Get Free Updates

Join over 50,000 investors who get the latest news from ETFDailyNews.com!

Most Popular

Explore More from ETFDailyNews.com

Free Daily Newsletter

Get daily ETF insights from our market experts. Never miss another important market development again!

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories