UTIL Utilities Sector Weekly Chart Overbot Rising Wedge Negative Divergence

The utes finally came up for a new high locking in the negative divergence. Keystone has been waiting for the utes to set up for a few months now. The broad markets will only experience sustainable long term downside when the utes lead the parade south. The utilities are now in their final set up. Note the red rising wedge with negative divegence across the board except for the RSI that wanted to see another higher high in price (green circle), and now we have that higher price.

Utilities are forming a major top now and will roll over in the coming days and weeks. As the utes roll over they will lead the broad markets down, serving as an early warning signal of what is to come. This set up shows that the broad markets are more than likely placing a major top anytime between now and say within the next month. All long positions must be scrutinized over the coming days to determine if you are willing to hold a stock for along time, since, once the utes roll over, then the broad markets roll over, the markets will not be making rebounds as they have this year, the trend will be down.

Thus, watch the behavior of the utes like a hawk over the next month. Another trick is that once the 50 week MA is lost for the utes, you typically see a trap door open in the broad markets with a significant multi-handle drop in minutes. The 50 week MA is now 412, so price is comfortably about 30 points above this trap door, so there are no immediate worries.  But, consider the 50 week MA very seriously, if it fails, there is no return, this MA represents the water falls for the broad markets. SDP is quite attractive now as the utes top out. 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.