FINANCIAL ICEBERG
Always consider hidden risks
TECHNICALS
The Situation

​​​One of the worst defensive sector peformance since the beginning of the year have
​been ​the ​Utilities Sector from January 18 2015 til June 25 2015.


Since then, the Utilities Sector (XLU ETF) are outperforming the Mighty SP500
​(SPY ETF) ​​​​and ​​the 7 DMA did turn upward on September 29.
.​​
(2nd chart below - Amber Line ).

One interesting Technical element is that we are near testing on a Relative Basis
( Ratio of XLU over SPY ) a Major Resistance Trendline that started back on
January 29 2015. ​​ (2nd chart below - Red TrendLine ).

​​The XLU reached on August 7 the highest level at 44.58 since the previous low made ​on September 4 at 40.80.
​​XLU ETF broke the 200 DMA ( Day Moving Average ) on October 15 ​now at 44.26. 
​​​
( See first chart below - Green line -  ellipse ).

​SP500 Utilities Index SPDR ( XLU ) is within an uptrend channel that started back on September 24 2015 with 44.41 as support and 45.67 as resistance. ​( See first chart below - Amber Trendline - Ellipses ).

​Another constructive technical sign is the we had on October 16 the 20 DMA ( Day Moving Average ) getting above the 50 DMA on the XLU ETF.

But the most interesting factor is that we are testing a Major Resistance Trendline that started back on January 28 2015 at 45.01... We are near a potential Break Out on the XLU ETF...
​ ​( See first chart below -  Red TrendLine - Ellipse ).






​​
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SP500 Utilities Sector vs SPY: Near Break Out ?     $SPY, $XLU, $TLT #xlu #tlt #SP500

SP500 Utilities Sector vs SPY: Near Break Out ?
​October 12 ( From TradingView )​

RATIO ( Blue Line )  21 DMA ( Amber Line )
SP500 Utilities Sector SPDR ( XLU )​
​over
SP500 Index ( SPY ETF )​
SP500 Utilities Sector SPDR ( XLU )​
Daily Price ( Candles )
20 DMA ( Yellow Line )​
50 DMA ( Red Line )
​200 DMA ( Green Line )
Financialiceberg.com
Financialiceberg.com