UTIL Utilities Weekly Chart Overbot Rising Wedge Negative Divergence

UTIL utilities chart shows the rising wedge with three key touches now.  The blue lines show the overbot conditions (stochastics), rising wedge and negative divergence--except for the RSI. Utes prime for a pull back right now but the RSI says it wants to see price come back up to these levels one more time after a sell off occurs. Chairman Bernanke's POMO pumps have driven the utes skyward--the Fed understands the importance of the utes concerning market leadership. If the utes lead or are coincidental with a market down move, the broad market down move is much more serious.

If UTIL drops under 411 this week, it will signal major market weakness ahead, but, at 437 now, over 25 points above, the market bulls are not at all worried about an extended move down in the markets. Projection is a pull back in the utes now, but after a selling period, say a week or three, price will come back up again to satisfy the RSI. At that point, the utes will be lined up with firm negative divergence across the board and that will show that the top is in for the utes and 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 financial advisor before making any investment decision.