The pattern typically suggests to chart watchers that there's more upside in store for the index. But for one trader, golden crosses should be seen more as guides than buying signals.
"Historically, it's better to look at this [as] more of a gauge of strength or weakness more than using it as a trading signal per se," Mark Newton, president and founder of Newton Advisors, told CNBC's"It's just important to recognize that when you start to see this rotation towards defensives, it's normally very important to pay attention to this type of thing. It normally does happen near market peaks," he said.
With the upcoming presidential election just weeks away and stimulus talks still ongoing, uncertainty is still abounding, Newton noted. But in the last month, "we've seen the XLU move up to the highest level we've seen since March," he said, citing a chart of the
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