Dow Jones Utility Average Overdue For “Major” Correction

Are you watching the Dow Jones Utility Average? Well, you probably should be.  Utilities have been a strong sector, especially off the recent market bottom for stocks.

Below are a couple of charts showing the 3 drives higher.  Both are similar but get at the same points.  Utility stocks appear to be racing to a top.

As you can see, the Dow Jones Utility Average is pushing higher into my target “SELL” zone with a monthly bearish divergence. In my opinion, this is a big deal and begs of caution… in the past 26,854 days Utilities have never gone longer without a “major” correction.

dow jones utility index higher price targets_june

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I’m also going to show another chart of the Dow Jones Utility Average from a little different angle… watch closely here – that upper target is pretty darn close.  And it comes on a third drive to a high. Since the low in the 1940’s this time horizon has brought a major pullback. Looks like we are  coming due… or overdue.

dow jones utility index utilities stocks topping chart_june

Thanks for reading and good luck out there.


Twitter:  @BartsCharts

Author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.