If I understand your question correctly, you are asking if a pullback in utilities would correspond with a rally in the broad market? If so, I see your logic,as utilities are often a flight-to-safety sector due to their steady earnings in all economic environments, including recessions. However, that is very much an on/off correlation with the stock market as you can just look at how they both rallied in lock-step on most of the big moves leading down into & then above the Dec 24th lows (high positive correlation).

As such, I try not to infer too much as to what one or the other (stock market or utilities) are going to do based on what the other is doing but rather to trade them based on their own unique technical posture. Right now, XLU not only just put in a divergent high but also broken down & backtested the primary uptrend line below & did so while at overbought reading on the daily chart that have been followed by sharp corrections, without fail, in recent years.