XLU unaffected by correction

Unaffected by the wider market weakness of the last sessions, XLU – the Utilities Select Sector SPDR Fund – keeps moving above its 10-day exponential moving average and below the upper Bollinger Band. What is more, the long lower tails of the candlesticks indicate that the bulls react decisively to any attempts by the bears to move price lower.

Despite the above, however, MACD has reached its signal line, which indicates that momentum has lost its strength somehow.

XLU’s Relative Strength, on the other hand, has moved above its 20-day exponential moving average, a sign of strength compared to our benchmark, the SPY.