UTIL Utilities 1-Minute Chart

UTIL 477.87 is a key level this week. Keystone calls the failure the trap-door. Remember last week the key number was 483, which was teased, but did not fail. Today, the 477.87 failed at 3:45 PM. The computers know the importance of the level, hence the gap down upon failure. The bears, however, could only open the trap-door for 4 minutes and it closed again. The positive divergence in this 1 minute time frame bounced price. If yields move higher, utilities will likely weaken so if you see the 10-year yield moving up tomorrow, the trap-door will likely open.

If UTIL 477.87 fails, and the trap-door opens, and remains open for 7 to 10 minutes, the SPX will likely flush about 20 or 30 handles in quick order, typically within about one-half hour's time. If the flush does not occur in close order, then it should before the day's end. If not, then the following day. It would be interesting to see the failure just to see what happens. Watch UTIL 477.87 closely. Bulls are hoping the rusty hinges keep the trap-door closed while bears are spending the evening oiling the hinges with WD-40. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.