Chart of the Day - Wednesday, May 8, 2024

🏆 Today’s Chart of the Day was shared by Eric Conrads (@conradseric).

• The Utilities Sector ($XLU) continued higher for the sixth consecutive day, closing at its highest since January 2023. It's risen in 14 of the past 16 sessions, outperforming the S&P 500 by +9% in that span.

• While $XLU remains -10% below all-time highs, it made a new 52-week high for the first time in 416 trading days yesterday, ending its longest streak without a 52-week high since 2009.

• $XLU is leading by a wide margin in Q2, up +7%, while the next best sector ($XLP) is barely positive. As Eric points out, the bulls don't want to see a defensive sector like Utilities leading the race. Although, the S&P 500 is hovering less than 2% below record highs.

The takeaway: Utilities ($XLU) have led by a notable margin recently. Utilities often lead when the market is under pressure, but the market has been relatively calm lately.