Yesterday was the worst day for the Dow Jones Industrial Average so far this year with the bellwether index falling 265 points. We saw nearly every sector of the market get beaten down for 1% or more which left many traders screens bathed in red across the board.
Despite that thorough drubbing, many sectors have rebounded significantly today to nearly erase yesterday’s losses. Specifically I have been closely monitoring the defensive equity income sectors such as Utilities Select Sector SPDR (XLU), iShares Real Estate ETF (IYR) and Consumer Staples Select Sector SPDR (XLP).
Looking at a charts of all three of these sectors below we can see a very strong upward push on the High/Low/Close bars since yesterday’s lows. When a stock or ETF makes a very long bar followed the next day by an immediate reversal, this pattern is known as “train tracks” in trading slang.
— Guru Focus