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Market Internal Deteriorated as S&P Tests Key Support

the fact that the S&P is basing sideways near key support as it worked off the short-term oversold condition rather than bouncing higher, indicating an internal weakness. Several short-term indicators are pointing toward further weakness, suggesting that S&P’s 2700 might not hold for long. A failure to hold above key price level indicates a change in sentiment and a much deeper pullback should be expected

Trading Strategy – Utilities Select Sector SPDR ETF

  One of the noteworthy developments in recent days has been the move in defensive stocks.  The group attract strong buying interest in recent days as the potential for tit-for-tat cut into confidence.  The Utilities Select Sector SPDR ETF (XLU) rose 0.92 percent to 52.66, bringing its MTD gains up to 1.3 percent.  Now the …[read more]

Trading Strategy – Utilities Select Sector SPDR ETF

  While escalation in trade tensions between the U.S. and China weighed on risk assets, areas of the market considered safer traded up on the day.  The Utilities Select Sector SPDR ETF (XLU), the so-called defensive sector, bucking the sharply negative tone of the overall market, up 0.90 percent to 52.49.  Now the question is …[read more]

Trading Strategy – Utilities Select Sector SPDR ETF

  Defensive stocks were under tremendous selling pressure as the yield on the benchmark 10-year Treasury note inched higher to 2.94 percent.  Higher interest rates tend to make high-dividend yielders less attractive versus the relative stability of high-quality bonds.  The Utilities Select Sector SPDR ETF (XLU) fell 3 percent for the week, bringing its YTD …[read more]

Trading Strategy – Utilities Select Sector SPDR ETF

  One of the noteworthy developments in recent days has been the move in defensive stocks. Defensive sectors, which still offer a higher yield than the overall market, although the gap between their yields and the 10-year’s has narrowed significantly, if not completely.  Yield on the 10-year Treasury note closed higher at 3 percent, a …[read more]

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