My “old faithful”, the Dow Utilities, continues to behave beautifully. The crossovers are picture-perfect, and the breakdown of the major ascending trendline is absolutely key.
Most people probably don’t give a second thought to the Utility index. I mean, Netflix and Google are so much sexier, right? But don’t overestimate the important of this ancient guide. We have completely an absolutely gorgeous top and are breaking key support.
Historically, the utilities and stock market in general tend to track rather well. They may not peak exactly at the same time, but it’s awfully close. Look at the S&P 500 below (in blue) and Utilities (in black). I’ve noted with arrows where they have topped. Pretty powerful stuff, wouldn’t you say?