Friday, January 17, 2014

UTIL Utilities Weekly Chart Sideways Symmetrical Triangle

The utilities are very important for the next few days. Today is the last day of trading until Tuesday due to the Monday Martin Luther King Jr holiday. Through next Friday, the two key numbers for UTIL are the 50-week MA at 494.12-ish and 491.68 (the closing price 15 weeks ago). Price moved strongly higher yesterday to help place the bulls in a good position for next week. UTIL begins the day at 492.70 one-point above the 491.68 lower boundary which creates bullishness in the markets but about 1-1/2 point below the 494.12 upper boundary which creates market bearishness. The move in UTIL will dictate the move in the broad indexes. Note how the sideways triangles envelope price for nearly one year's time. The indicators are lining out sideways, ditto the 50-week MA which is flat. A big decision is coming in the days and weeks ahead and it will take equities in the same direction.

Typically, when the utilities peak and break down it is a very ominous market signal. Utes peaked 9 months ago but the broad indexes continue making new highs. This is due to the Fed and BOJ money printing distorting markets and destroying price discovery. It is a mystery as to just what any asset is worth these days due to the obscene central banker intervention. Market bulls will have a happy weekend if UTIL moves above 494.12 today since next week will be set up for market upside. The bears will be happy if UTIL is weak today and falls under 491.68 since this indicates that the bears will growl next week. If price remains in between, status quo, the markets will keep everyone guessing. 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.

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