After breaking out to an all-time high last month, the Dow Jones Utility Average rebounded successfully off its first test of the breakout level.
Just a quick post today. We’ve noted several times over the past few months that even during this strong post-February bounce off of extreme oversold levels, the defensive sectors have continued to lead the way higher. This includes the utility sector which provides the material for our Chart Of The Day. After breaking out to an all-time high last month, the Dow Jones Utility Average saw its first test of the breakout level this week. And based on preliminary readings, it is passing the test.
So if you’re wondering whether you should jump aboard the recent biotech bounce or not, just remember that there are actually areas of the market that are still making higher lows and higher highs – and all-time highs at that.
Have a great weekend.
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The commentary included in this blog is provided for informational purposes only. It does not constitute a recommendation to invest in any specific investment product or service. Proper due diligence should be performed before investing in any investment vehicle. There is a risk of loss involved in all investments.