The utilities sector is often overlooked by investors and financial media, as they prefer to talk about sexier sectors/assets like semiconductor stocks, small caps, crypto-currency, gold… you get the point.
Utility stocks may be boring but they sure are important to the health of the broader stock market and economy! They are also interest rate sensitive and may provide us with clues as to what’s next.
Today we look at a “monthly” chart of the Dow Jones Utilities Index to highlight what I believe is an important point in time & price.
As you can see, Utilities were in a long-term up-trend channel before breaking down and out of it in early 2023. BUT, a multi-month rally has the Utes testing the underside of the channel this month.
Breakout or breakdown is the question! My gut tells me that what the Utes do at (1), will send an important message to multiple assets! Stay tuned!!
Dow Jones Utilities “monthly” Chart
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Twitter:Â Â @KimbleChartingThe author may have a position in mentioned securities. 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.
