Financial Iceberg

FINANCIAL ICEBERG

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TECHNICALS

The Situation

One of the best defensive sector performance since the beginning of the year
have been the Utilities Sector as reach for yield is still on...

The XLU ETF reached on March 17 2016 the highest level at 49.42 since
January 29 2015. (See first chart below - ellipse).

The Utilities Index SPDR (XLU) still flirting with the resistance trendline of a rising wedge that started back since February 3 2016. (See first chart below - Red Trendline - Ellipse).

And the Utilities Sector are outperforming also the Mighty SP500 (SPY ETF) (Ratio of XLU over SPY) since December 7 2015. Few of us realize that we broke a Major Resistance Trendline on a relative basis (Ratio of XLU over SPY) on January 14 2016 that started back since November 2011! (Second chart below - Red Trendline).

But the most interesting factor is that the Ratio of the Utilities Index SPDR (XLU) and the iShares
US Treasury Bond ETF (TLT) compare to the Mighty SP500 Index are confirming the interest rates
sensitive sector as the Utilities are outperforming bonds since February 11 2016. (See third chart below - blue line).

And again, few of us realize that we broke a Major Resistance Trendline on a relative basis (Ratio of XLU over TLT) on March 16 2016 that started back since May 2007! (Third chart below - Red Trendline).

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Utilities Sector ETF XLU: Outperforming? $SPY, $XLU, $TLT #xlu #tlt #SP500

Daily RATIO
Utilities Sector SPDR ( XLU )
Shares US Treasury Bond ETF ( TLT ) ( Blue Line )

Utilities Sector ETF XLU: Outperforming?
March 28 2016 ( From TradingView )

RATIO ( Blue Line ) 21 DMA ( Amber Line )
Utilities Sector SPDR ( XLU )
over
SP500 Index ( SPY ETF )

Utilities Sector SPDR ( XLU )
Daily Price ( Candles )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )

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