Utilities ETF (XLU) New Long-Term AND Intermediate-Term Trend Model BUY Signals


I have a variety of StockCharts technical alerts set up. As a result, I receive emails whenever the entities in my alert ChartList receives new Trend Model signals and Price Momentum Oscillator (PMO) crossover signals. Today I received an alert that the Utilities SPDR (XLU) triggered a new Intermediate-Term Trend Model BUY signal. When I looked at the chart I realized that a new Long-Term Trend Model BUY signal had generated too.

The Trend Model signals are all found on the daily chart by comparing the 5/20/50/200-EMAs. Currently on the daily chart, we see that they are configured bullishly with the fastest EMAs are on top. This means that all Trend Models are on BUY signals. It's easiest to see the ITTM and LTTM signals in the thumbnail.

The daily chart itself looks bullish. The PMO is on a BUY signal that generated in oversold territory. Those signals are usually the most productive. The SCTR is rising but isn't in "internal strength" territory (above 75) yet. The biggest concern would be the bearish wedge and the nearing of overhead resistance at $49.25. A breakout would likely nullify the wedge and provide a safer entry point. The weekly chart has a very defined declining tops trendline. Waiting for a breakout above this resistance would be even safer. The PMO is currently on a SELL signal but it is rising which is positive.

The monthly chart shows a very recent PMO SELL signal. The rising trend channel is encouraging. The PMO has been mostly flat since 2015 due to price acceleration dampening with the steady rising trend. I wouldn't get too concerned about the PMO SELL signal. Most important on this chart is rising bottoms support. If that breaks down, I wouldn't want to be nearby.

Conclusion: XLU triggered new Trend Model BUY signals. Charts in all time frames are mostly bullish with support and resistance lines providing the best guidance to entry/exit points.  

The NEW DecisionPoint LIVE public ChartList has launched! Click on the link and you'll find webinar charts annotated just before the program. Additional "chart spotlights" will be included at the top of the list. Be sure and bookmark it!

Come check out the DecisionPoint Report with Erin Heim on Wednesdays and Fridays at 7:00p EST, a fast-paced 30-minute review of the current markets mid-week and week-end. The archives and registration links are on the Homepage under “Webinars”.

Technical Analysis is a windsock, not a crystal ball.

Happy Charting!
- Erin

Erin Swenlin
About the author: is a co-founder of the website along with her father, Carl Swenlin. She launched the DecisionPoint daily blog in 2009 alongside Carl and now serves as a consulting technical analyst and blog contributor at Erin is an active Member of the CMT Association. She holds a Master's degree in Information Resource Management from the Air Force Institute of Technology as well as a Bachelor's degree in Mathematics from the University of Southern California. Learn More
Subscribe to DecisionPoint to be notified whenever a new post is added to this blog!
comments powered by Disqus