A CLoser Look At Utilities

I'm going to continue looking at various sectors of the market with a look at the safer areas -- the utilities.



The 5-year chart chart shows the sector is still clearly in a rally.



Here's a closer look at the last 1 1/2 years. Notice:

-- The average is still above the long term trend line, but

-- There is also a broadening formation occurring which is a reversal pattern.



The SMAs tell us the following:

-- Prices are below the 200 day SMA, which indicates a bear market

-- The longer SMAs (the 50 and 200 day SMA0 are clearly moving lower.

-- The 50 day SMA is about to cross over the 200 day SMA -- a bearish crossover.

-- Prices and the shorter SMAs are wrapped up around the same level, indicating a lack of direction.

Short version: expect more losses.