Waning rally in utilities could spell trouble for the broad market

|By:, SA News Editor

Utility stocks have been the top performer in the S&P 500, up 11% YTD, but they’ve started to wane - down 2.7% so far in May - and that may not bode well for the broad market, WSJ's Steve Russolillo writes.

Strength in utilities suggests investors have taken a more defensive mindset in 2014 compared to last year’s big rally, and if demand for the group continues to fade and struggling momentum names fail to step up, the entire rally would seem to be in trouble.

Whether utilities remain on top could foreshadow how the broad market performs in the months ahead, Russolillo concludes.

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