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Below plots the BMI which is a real-time indicator of institutional appetite for equities. It\u2019s inching ever so closer to oversold levels.<\/p>\n<\/div>\n<\/div>\n
Here it\u2019s overlaid against the S&P 500 (SPY ETF<\/a>):<\/p>\n<\/div>\n<\/div>\n Notice how when it reaches the green zone of 25%, stocks tend to rally hard soon after.<\/p>\n While just about all sectors are under pressure, the Utilities group is reaching extreme levels.<\/p>\n Below details all daily Utility stock buys and sells. This is MAPsignals data, looking for unusual volumes as stocks fall, likely institutional footprints.<\/p>\n Below shows how Tuesday saw nearly 90% of the institutional universe log a sell signal. That\u2019s extreme. I\u2019ve circled prior similar events and overlaid these signals on the Utility Select Sector SPDR ETF (XLU<\/a>):<\/p>\n<\/div>\n<\/div>\n We believe this action is \u201cforced selling\u201d that\u2019s unlikely to last forever.<\/p>\n Looking back since 2013, there\u2019ve been 37 days with 20 or more Utility stocks sold in a day. If you think that\u2019s bearish, think again.<\/p>\n One month after this level of selling, XLU jumps 1.3%.<\/p>\n 3-months later the average gain ramps to 8.1%.<\/p>\n A year later the historical returns have settled at a juicy 13.3%:<\/p>\n<\/div>\n<\/div>\n Look, no one has a crystal ball. However, data can help alert you to potential opportunities.<\/p>\n While many are fearful right now, this rare signal says better days are likely ahead for this oversold group.<\/p>\n<\/div>\n<\/div>\n Utility stocks are seeing forced selling in our opinion. Expect a bounce given the historical evidence.<\/p>\n If you want to take your investing to the next level, learn more about the MAPsignals process here<\/a>.<\/p>\nForced Selling Hits Utility Stocks<\/h2>\n
Bottom Line and Explanatory Video<\/h2>\n