Defensive Sectors on Breakout Watch Higher
Markets are kicking off this holiday shortened week mostly in the red, led lower by the Russell 2000, small caps.
But, not everything is being thrown away , as we see both the Consumer Staples and the Utilities Sector rallying towards multi-month highs.
Here’s a look at both on the daily time frame.
$XLP poking its head above this trend-line and recent resistance at 52.
$XLU Seen trying to clear above 49, an area that sellers have lined up against throughout the month of December.
Both of these patterns extend in length over the past couple of months and tell a story of potential rotation for weeks to come, if new uptrends develop.
These aren’t exactly high beta plays, but they could be safe beta through earnings season and the upcoming inauguration .
Thanks for reading, and good luck out there.
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