Wednesday, January 29, 2014

UTIL Utilities 1-Minute Chart

Lots of drama with utilities today. The robots are in control ahead of the Fed. The algo's all have the 15-week look back and 50-week MA programmed and that is exactly where the price movement occurs. Markets are idling ahead of the 2 PM EST Fed decision only a couple hours away as lunch time approaches on the East Coast. Watch UTIL 496.05 and UTIL 494.90. UTIL is now printing 495.46.

Bulls win above UTIL 496.05 and will send the SPX to 1800+. Bears win below UTIL 494.90 and will send the SPX to a 1772 failure and lower. Price keeps teasing each side. Note the zig-zag pattern. One or the other side will win and take the broad markets in that direction. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

Note Added 12:16 PM: Simply amazing. UTIL drops to 494.90 and when it looks like failure, instead launches to the upside straight to 496.05 in 13 minutes time, then spanked down again to 495.77. What does this tell you? Stakes are high and the winner is identified by either 496.05 for bulls, or 494.90 for bears. Fed now less than two hours away.

Note Added 12:48 PM: UTIL moves above 496.05 and the bulls are holding it higher at 496.81. This provides the bulls the nod. SPX is sitting at 1781 support. The action is interesting considering the Fed backdrop. The Fed decision is only about one hour away.

Note Added 1:09 PM:  Wheeeee. Spectacular wild roller coaster action. UTIL collapses from above 496 to below 495 in only 5 minutes time. The 494.90 fails, however, price recovers now and moves through the neutral sideways zone again at 495.40. It's a toss-up.  Looks like the Fed decision will choose the winner today.

Note Added 1:59 PM:  Fed decision imminent. UTIL is exactly at 494.90.... 494.63 ... 494.68...

Note Added 2:16 PM: Fed decision is to continue the $10 billion per month taper so the $85 billion per month dropped to $75 for January and now for February the ongoing QE will be at $65 billion. This was expected. Fed did not want to make waves. Now Chair Yellen takes command moving forward and Bernanke joins Greenspan at the fishing hole. UTIL remains under 494.90 giving the bears the nod. Markets would be expected to sell off into the close as long as the 494.90 trap-door remains open. Dollar/yen loses 102.

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