It seems if there is no crash in Utilities, then there is no crash in the stock market, we need to watch the lines here. Utilities are very high right now.
It seems only volatility in Utilities can truly threaten equity , so that this might be the ultimate indicator for going short equity . Right now the danger level is very low, because Utilities are through the roof.
DOWU has been in a down trend since January of this year. The top in January was 657 and on March we found a bottom at 565.55. The drop of 14% was result of a 25.65% up trend that started in July of 2014 up by 174 days. With bond yields going up there could be room for a drop to 560. RSI is showing that the index is taking a breath from this 42 days drop since...
Since DJIA has only 30 components, and not sufficient to portray the general pictures, as a result DJ Transportation and DJ Utilities are created as well. 1st it was the Industrial index making all time high, followed by the transportation index, and now the utilities index. I can see that 2 massive rejection by 580, plus the bearish divergence comparing to the...
Dow Utilities could setup a classic SHS pattern (in orange and target in yellow) with a neckline around the 527 handle. Left and right shoulder are now at the same highs with a 61.8 retracement of the head - at the 577 handle. The other pattern is a harmonic ABCD patern (in blue) with a target at the 510 handle Momentum on the MACD histogram is decreasing Will...
As I expect a good correction now in S&P, usually one could switch into Utilities. My sense though is - given the great run up until here - this won't be saving the bacon. A clear negative divergence plus this classic 3-day candle stick formation is enough to switch