The S & P 500 Index (SPX) has gained 31% since the April low, breaking out to new highs in a bullish long-term development. The gains have been largely driven by large-cap technology stocks like Nvidia (NVDA) and Microsoft (MSFT) , which are up about 100% and 48%, respectively. These names are relatively overbought, along with much of the market's leadership, versus the SPX. We think there is greater appeal in relatively oversold stocks as the rally broadens. One sector that is relatively oversold and has a fresh technical catalyst is utilities. The PHLX Utility Sector Index (UTY) is breaking out to new all-time highs, resolving a six-month trading range to the upside. The chart has the look of a long-term cup-and-handle pattern, which we find to be a high-probability technical setup for upside follow-through. The weekly MACD is positive and diverging, which suggests overbought conditions will be absorbed well. Within the utility sector, the chart of Consolidated Edison (ED) is compelling because it has oversold indications in absolute terms and relative to the SPX. There is a new upturn in the weekly stochastic oscillator from oversold levels, which tends to be a bullish intermediate-term development. The DeMark Indicators also show signs of downside exhaustion relative to the SPX that support improved relative performance in the coming weeks. ED is in a cyclical uptrend above support from the weekly cloud, near $97. The prevailing bullish trend increases conviction behind the intermediate-term oversold signal. An intermediate-term upside objective for ED is defined by the April high, near $113. A daily chart shows ED rising above its 50-day MA, near $102. A breakout is likely to be made decisive since short-term indicators like the daily MACD point higher. Short-term momentum has been improving for several days, and the daily stochastics have a bullish 'pop' in support of near-term upside follow-through. The first level to watch on the upside is May's gap, which would be filled up to $107. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. 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