SDP Ultrashort Utilities Oversold Falling Wedge Positive Divergence

SDP, an inverse ETF of the utilities sector, is set up nicely for a positive divergence bounce. Very attractive entry any where in here. Of interest is that the utilities should peak and roll over if the broad equity markets are making a major top over the coming days and weeks. The utes are an early warning signal and will foretell bad news for the markets if they weaken.

The utilities weekly and daily charts are negatively diverged since the SDP is an inverse with its weekly and daily charts positively diverged. SDP should bounce nicely. Note the prior bounce in February used the 20 MA as a ceiling. Gaps at 14.0 and 15.5. Thus, a bounce is in order here to test resistance at 14-ish, then onward and upward to 15.5 in the coming weeks, which corresponds to the utes rolling over, which in turn means the broad markets will fall into trouble in the weeks ahead. Time will tell. 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.