As the U.S. markets have sold off, defensive sectors with lower volatility have done well.
Consumer Staples, Real Estate, and Utilities are all sectors with low beta that have outperformed.
Interestingly, Utilities had the perception of being a beneficiary of the AI trade last year while now they seem to have fallen back to their roots of providing a safe haven for U.S. investors.
As such, now the sector has built a longer-term base with a clean upper threshold at its prior support. If this ratio can break through the area marked below, it would point to an emerging trend favoring Utility stocks.
These types of trends don't happen often; it's only when the market is really under pressure.
The analysts at All Star Charts are hosting an emergency market update today at 2:30pm ET to break down what's happening with this sell off and to discuss tomorrow's FOMC announcement.
