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February 07, 2006
The Utility SPDR (XLU) Nears Support
The Utility SPDR (XLU) has been under pressure the last few weeks as it declined to support around 31.5. The December lows mark this support zone and the Jan-Feb decline retraced 38-50% of the Oct-Jan advance. The decline looks like a falling flag and XLU formed a bullish engulfing yesterday. However, given the volatile open of these ETFs, I am not going to take this pattern seriously until XLU breaks above 32.5.
Posted by Arthur B. Hill at February 7, 2006 08:32 AM