Here Are The Type Of Stocks Still Working Leading The Market Now Breaking Out

In my market update on August 29, 2024 I wrote about DUK as a stock to watch to breakout. While the stock market averages fell last week, and most stocks dropped, DUK actually broke out to the upside.

When I wrote that update, DUK’s 20-day Bollinger Bands were coming together, to cause its 20-day Bollinger Band width indicator to fall below 4.

This typically happens during a period of consolidation in a stock that leads to a new move.

That move happened last week.

DUK is a utility stock.

It’s a defensive stock paying a stable dividend.

Defensive stocks and sectors are what are now leading the market.

These are sectors of the economy in which earnings, and dividends, are stable no matter what the economy does in the next twelve months.

These sectors tend to lead at the end of bull markets and during bear markets, when people worry about a slowing economy or recession.

We aren’t in a bear market for the S&P 500 yet, but these are the sectors outperforming the S&P 500 averages now, and that tells us a lot.