The Dow Jones Utility average is in the process of forming a huge head and shoulders pattern on the monthly. This pattern is much bigger than 2001/2008 head and shoulders that signaled the market top. The right shoulder ,if it forms ,could take this year to do so.
DJU
Started by
MDurkin
, Feb 09 2017 07:32 AM
3 replies to this topic
#2
pisces
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Posted 09 February 2017 - 09:12 AM
IMO , it might be a bit early to say what is forming there. would your neckline be at about 550 ? if so you are looking at 2+years to just form a pattern. A lot of water is going to run down the creek in the meantime 
#3
Data
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Posted 09 February 2017 - 10:12 AM
I don't see a head-and-shoulder nor a triple top as in 2007. It appears to be in the top half of a channel from 2000. The middle of the channel is around 615.
#4
Data
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Posted 09 February 2017 - 10:30 AM
The biggest problem with following the 2000 and 2007 script is where the debt blowup is going to come from since the central banks are buying up sovereign debt and corporate bonds to some degree. In 2001-2002, it was the telecom bonds. Everyone knows about 2007-2008. It would have to come from something outside their control, such as China or the oil producers as in 2015.
Edited by Data, 09 February 2017 - 10:31 AM.
