UTIL Utilities Daily Chart H&S

Utes daily chart shows a funky H&S pattern, the neckline busted at 427 with price back kissing the last few days. The 50 MA is at 426, so price is sorting out the next move. The only bullish sector currently, measured by Keystone's proprietary algorithm, is the utilites. This is interesting since any sustained substantial move down in the markets should be led by the utes. That tells you that the broad markets want to come up again to allow the utes to set up to lead everything down.

The H&S pattern can provide the impetus to drive everything lower should it play out and target 413 and lower. For the remainder of this week, if UTIL loses the 413 area, the markets would be in serious trouble, you will see big time fear. If 407 is lost, you will see panic in the broad markets.

A gap at 430 is open above, and perhaps 431, but other than that, the utes have done a good job sealing the upside as price moved lower. Several gaps require filling below, two between 407 and 413. The positive divergence green lines gave price the pop the last couple days, note that the RSI did not. Also note that the profile for the indicators is weak and bleak as they relate to price.

Chairman Bernanke's POMO pumps are probably targeting the utes, their importance cannot be understated, most algorithm's, like Keybot, have them programmed into the mix. In a nutshell, the broad markets will be in serious trouble should the H&S play out in the days ahead. 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 financial advisor before making any investment decision.