Chart Master: The technical trade on Utilities

Market Performance - Utilities have lagged the market since the dot-com peak, with the market doubling the sector's performance [1] - The total return of the S&P 500 utility sector and the S&P 500 with dividends reinvested are essentially equal over 25 years, highlighting the importance of yield [2] Technical Analysis - The XLU (Utilities Select Sector SPDR Fund) shows a classic breakout pattern, suggesting a bullish outlook [3] - Multiple ways to draw trendlines on the XLU chart indicate a generally bullish formation [3] Investment Recommendation - The utilities space, representing 2.4% of the S&P 500, is viewed favorably for potential profit [3]