The Utilities SPDR (XLU) continues to hold up well as it challenges its May-August highs with an inverse Head-and-Shoulders pattern. This also happens to be a bullish continuation pattern. Yes, a Head-and-Shoulders can mark a continuation. Also note that the pattern since late July looks like a cup-with-handle. Either way, a break above resistance is bullish.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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