Joe Friday: "Breakdown in Key Down Jones Index"
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Earlier this week the "Power of the Pattern" shared that Utilities had almost doubled the performance of the S&P 500 and that they were making a bearish rising wedge up against a trio of resistance. The implication was that Utilities could run out of energy and impact the broad markets. (See post here.)
The two-pack below reflects that U.S. and Global utilities broke below key support levels very hard yesterday, triggering a good deal of selling, almost to a panic stage.
A big picture look at Utilities shows the potential for a "Double Top" and a fresh breakdown in a multi-year rising wedge pattern at (2).
One index is not the holy grail of signals, but do keep an eye on this index because it can send quality signals about the bigger picture, and this one could be rather important.
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