The Utilities Select Sector SPDR ETF (XLU) is currently trading at a 1.0% and 6.0% premium to its 50-day and 200-day moving averages, respectively. The fair percentage premium to both simple moving average underlines the strength of XLU. It could remain strong until it crosses below both these moving average. It might see support around its 50-day moving average, which is near $53.
XLU’s RSI (relative strength index) currently stands at 55. Technical analysts consider RSI movements above 70 to be trading in the overbought zone, while movements below 30 are considered in the oversold zone.
NextEra Energy (NEE), the largest constituent of the S&P 500 Utilities Index (XLU), is currently trading at a 3.0% and 13.0% premium to its 50-day and 200-day moving averages, respectively. Its RSI currently stands at 66.
Duke Energy (DUK), the largest regulated utility, is currently trading at a marginal premium to its 50-day moving average, while it’s at a 6.0% premium to its 200-day moving average. Its RSI is 50.
XLU: Short interest
The short interest in the Utilities Select Sector SPDR ETF (XLU) fell 9.0% on July 31, 2017. The total shorted shares in XLU were 53.5 million on July 14, 2017, falling to 48.8 million on July 31, 2017.
The fall in short interest might indicate that fewer investors are now expecting XLU to fall from its current levels. Short interest also tracks investor sentiment.
Let’s move on to look at the current valuations for utilities.