The DJUA Elliott wave count of the recent decline is exceptionally clear.
If the count is correct,there could be one more rally for a few days followed by a final decline
to new lows and .618 Fibonacci support.
Note - Alternate count has wave "C" of an "A-B-C" Zigzag complete at either the 1/12/18 low
or to bottomed in the support zone on 1/16/18 - New moon...
The DJUA is nearing .618 support at the same time the Daily RSI is deeply oversold.
Elliott wave analysis indicates downward trend could continue for another five to eight trading days.
***Wave count will be illustrated in my next post.
If the DJUA bottoms soon the next rally could last for several weeks.
The Dow Jones Utility Average (DOWU) appears t be very close to completing an Elliott wave - Ending Diagonal Triangle (EDT).
The 2017 high is 755.37 the high today is 755.00 with the FOMC announcement on 11/1/17 watch for the DOWU to possibly move
above 755.37. Also rising EDT's usually complete with a slight throw over beyond the upper trend line.
Hello, ladies and gentlemen! From my perspectve, there is a perfect time for going up of utilities (AWK, NEE, NI, SO and so on). But I am afraid that the possible pull back of SP500 might influence the trends. What do you think guys?
It seems only volatility in Utilities can truly threaten equity , so that this might be the ultimate indicator for going short equity . Right now the danger level is very low, because Utilities are through the roof.
DOWU has been in a down trend since January of this year. The top in January was 657 and on March we found a bottom at 565.55. The drop of 14% was result of a 25.65% up trend that started in July of 2014 up by 174 days.
With bond yields going up there could be room for a drop to 560. RSI is showing that the index is taking a breath from this 42 days drop since...
Since DJIA has only 30 components, and not sufficient to portray the general pictures, as a result DJ Transportation and DJ Utilities are created as well. 1st it was the Industrial index making all time high, followed by the transportation index, and now the utilities index.
I can see that 2 massive rejection by 580, plus the bearish divergence comparing to the...
Dow Utilities could setup a classic SHS pattern (in orange and target in yellow) with a neckline around the 527 handle.
Left and right shoulder are now at the same highs with a 61.8 retracement of the head - at the 577 handle.
The other pattern is a harmonic ABCD patern (in blue) with a target at the 510 handle
Momentum on the MACD histogram is decreasing