Utilities have had a strong 17% rally from the January low as investors have piled into the sector chasing attractive yields relative to T-Bonds. Investors have also been getting out of high flyers and getting into basic industries like oil
companies and utilities. Now the odds are stacked against XLU
here with downside support 5% away and upside potential only another 2% above current levels. It looks like it is time to exit any longs or sell call options against positions, at the money. If shorting, 44.5 stop loss, 41.10 target. 43.14 last.