UTIL Utilities Daily Chart for Week of 4-18-11 Critical 408 Support

UTIL utilities daily chart highlighting the blue support line in the sand for the week of 4/18/11, at 407.78 to be exact. If price drops under the blue line this week, significant selling will come into the broad markets. If UTIL maintains price above the blue line, then the bulls will maintain buoyancy in the indexes. To keep it simple, simply remember 408 all this week and check UTIL often.

One of the key reasons the downside was limited in the indexes recently is that the utilities never led the move south. When the utes do lead down, the broad market selling is significant and extended. With the shortened trading week (Good Friday), volume may be on the light side so the jello can be pushed around the plate easier, and thus, the POMO pumps can target the utilities and prevent the breach of the blue line from happening.

The blue line will move up for the following week, and then up again for the week after that into mid May (making it harder for the utes to keep their head above water), thus, the projection would be that the utes lead the broad market down in a selling event that probably begins sometime over the next 14 trading days, perhaps this week, perhaps not, but most likely by mid May. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.