A Glance Into the Abyss

Despite The Fed standing pat at its most recent meeting and not raising rates, some of the reactions by the "rate-sensitive" sectors hint at tightening cycle still underway. 

Specifically, the utilities are testing the 200-day moving average on the sector ETF for the first time since January. On the XLU daily chart, below, the ETF clearly broke trend in August. While the 200-day moving average test may simply set up the next leg higher, we should start to hone in on how the sectors handles this reference point in the coming weeks. 

If price fails to hold this area, it adds credence to the hawkish case for higher rates coming, even if it means the market is going to force The Fed's hands. Alternatively, stabilizing here and turning back higher with good buy volume would support the "same ole, same ole" yawn that the dovish camp has been reiterating throughout this process. 

For now, utes and REITs remain suspicious laggards considering Yellen's punt at the last meeting--They typically would have been rallying sharply in prior instances where The Fed backed off. 

Elsewhere, NFLX and TSLA are showing signs of life after lagging marquee leaders AMZN FB GOOGL PCLN in recent months. I am looking to see if NFLX can hold back over its own 200-day moving average going forward to prove it is emerging from a corrective chart.