Stocks continued their slide into September, with all major U.S. markets closing down almost 3 percent Tuesday in correction territory. And unfortunately, traders say some traditional "safe-haven" stocks may not provide the safety investors may be looking for.
Technician Rich Ross of Evercore ISI said the S&P utilities sector, "normally a port in the storm," is now "teetering on the brink of a major technical collapse."
Utilities stocks, which can offer safety in turbulent times due their high yield and low exposure to the overall economy, have been one of the hardest-hit sectors of the S&P 500 this year, down 13 percent.
Ross said the utilities sector ETF (XLU) is about to break through its 150-week moving average at $40, a trend it has held above since 2010. XLU fell 2.7 percent Tuesday to $41.
"Do not own utilities, do not chase the yield here. These do not look good," Ross said Tuesday on CNBC's "Trading Nation."