UTIL Utilities Minute Chart 50 Week MA Line in the Sand

High drama today in the markets. The utes were the last sector to crack causing the collapse from early August thru the present. Therefore, one of the first signs that a recovery rally is underway occurs if UTIL is able to stay above the 50 week MA, which is now 414.42. Reference the red line on this minute chart.

At 12:30 PM today, the wheels fell off since UTIL lost the 414.4-ish level (red circle), the broad markets would go into free fall in minutes. Minutes later the bulls recovered and pulled price back from the brink, moving back above the red line barely averting a large broad market selling event. In front of the close, however, here she comes again, back down and only lost it for seconds (red circle) before recovering once again. High drama indeed.

Note the blue lines that show positive divergence that told you that price would bounce as these tests occurred. If UTIL can stay above 414.42 then the bulls can slowly get a recovery rally going, if the 414.42 fails in tomorrow's session, the broad markets will go into free fall. Watch it like a hawk. 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.