Overextended Stock Market Sells off Today; Utility Sectors Turn Bearish;

The sell-off for equities was broad based today, which is not surprising in light of the almost uninterrupted advance since the October correction.

One troubling sign, however, is that defensive sectors are impacted as much, or even more so, than the more aggressive growth sectors. For example, telecom and energy utilities are regarded as conservative investments, because they can provide dividend income and stable returns. The two charts below show that the corresponding Fidelity Telecommunications and the Utilities Funds rolled over and entered into a declining phase.

fstcx

 

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Buy/sell signals for Fidelity funds are available at FidelitySignal.com 

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