Sam Collins

All Eyes on Dow Utilities

by Sam Collins   08/27/08

Dow Jones Utility Average (DJU) -- This widely-followed index, which is composed of 15 of the largest U.S. utility companies, broke its major bull market trend line in July 2007.

Since then, it double-topped late last year at 557 and is holding at a neckline at just under 460. The stochastic indicator is currently overbought and a break of the neckline would signal that a major move down was about to occur.

But this formation is not predictive until the DJU's neckline is broken and so watch this index for a possible future signal.

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