UTIL utility sector weekly chart shows price jumping up to another negative divergence top. Daily chart is negatively diverged as well so the price will pull back sharply again in the coming days. A notable change is the RSI managing to attain the previous level in late 2009. Thus, even with all the negativity that is now built into this chart, price may want to come back up near this high again once a sell off occurs. That action will permit the RSI to set up with negative divergence and then everything can head over the falls together.
But, price can also simply head down from here and not look back. The utes lead the broad markets so the importance of this chart cannot be underestimated. If the utes roll over like this chart says they will, so will the broad markets. 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.
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