SPDR Select Sector Fund - Utili
Investment Thesis
XLU has been beaten down hard on a relative basis vs SPY — the XLU/SPY ratio RSI just hit 25.48, an extremely oversold reading that historically precedes at least a tactical period of utility outperformance. Absolute RSI is also nearing oversold at 35.45, while price remains above the 200-day MA — setting up a mean-reversion / defensive rotation trade.
Why It May Work
Why It May Not Work
Timeline
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