SPDR Select Sector Fund - Utili
Investment Thesis
XLU pulled back nearly 5% from its May highs to test and hold the 200-day MA (~$44.06), and the MACD histogram has just flipped positive — a classic mean-reversion setup within an intact Golden Cross structure. The catch: utilities remain a structural underperformer vs. SPY, so this is a tactical bounce trade, not a leadership thesis.
Catalysts to Watch
XLU sold off from $45.35 (May 22 high) to $43.10 on June 1, testing the 200-day MA support zone; price has since recovered to $44.53 (+3.3% off the low), MACD histogram has turned positive for the first time since the peak, suggesting the pullback is stabilizing.
Why It May Work
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Timeline
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