We don’t talk about the Utilities sector a whole lot, but in putting together our S&P 500 Chart Book this week, there were a number of interesting looking charts in the sector. Given their heavily regulated nature, in many cases, charts of stocks in the Utilities sector often look indistinguishable from one another. Given that, right now we’ll just focus on the chart of the overall sector. After a big run-up in late 2015 through the first half of 2016 on the heels of falling interest rates, the sector fell on some hard times in the second half of 2016. The lows following that sell-off, though, came right after the election when interest rates spiked. You’ll also notice that the decline came to an end right at the previous highs before the late 2015 breakout, and since then it has rebounded nicely. Beginning in late February, however, the sector has been in a sideways range consolidating those gains right below its prior highs. With this sideways range forming a nice base for the sector, any rally from here should be enough to power it right past those prior highs.
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