Over the last two years the Utilities Select Sector SPDR Fund (XLU) has been a leading indicator for a decline in the NASDAQ 100. The following chart shows the XLU declined before July 2024, late 2024 and late 2025. All occurred before a decline in the NASDAQ 100. With the recent decline of XLU, there is a high probability the NASDAQ 100 will move lower. As the NASDAQ 100, and other markets decline, indicators such as the 5-day average put/call ratio should provide guidance on when a turn to higher levels is expected.
Note that this information is for educational purposes only and not a recommendation.
Stock charts courtesy of StockCharts.com.
