FINANCIAL ICEBERG
Always consider hidden risks
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 June 27 2016 the highest level ever at 51.17 as desperate investors
looking for safety and reach for yield at the same time.​
Closing price on June 27 was 51.03. ​ ​​(See first chart below - Ellipse).

​The Utilities Index SPDR (XLU) broke on June 3 2016  the resistance trendline of an old rising wedge that started back since January 20 2016. ​​(See first chart below - Red Trendline - Ellipse). ​All that within a higher trading Volume for the XLU ETF. ​(See first chart below - Bottom Blue Line - Ellipse)

​​A new rising wedge we are that Bulls need to protect at all costs. (See first chart below - Blue Trendlines - 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 interest rates sensitive assets are outperforming lately the Mighty SP500 Index. And more surprising, the Utilities Index SPDR (XLU) are under performing long bonds (​iShares US Treasury Bond ETF (TLT)) since June 21 2016.  ​(See third chart below - blue line).

And again, few of us realize that we are in theprocess of breaking ​​a Major Resistance Trendline on a relative basis (Ratio of XLU over TLT)  that started back since May 2007! (Third chart below - Red Trendline - Ellipse)
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Utilities Sector ETF XLU: New High Ever?   $SPY, $XLU, $TLT #xlu #tlt #SP500

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

Utilities Sector ETF XLU: New High Ever?
​June 28 2016 ( From TradingView )​

Daily 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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Financialiceberg.com
Financialiceberg.com