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This caught my eye!

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I had to slap my computer terminal a couple of times this morning to make sure the quote I was getting from the Utility Index (UTY.X) was correct as this sector is at the top of the leader board today. What surprises me is that I don't remember the last time I saw this sector as a leading gainer. When I pulled up a bar chart, this is what I saw.

Utility Sector Index Chart - Daily Interval

A nice little "cup and handle" break out has taken place in the Utility Index (UTX.X) today and the break comes right at my retracement resistance of 334 and the longer-term 200-day moving average. Near-term bullish targets would be the 344 and 354 levels. A stop to protect against weakness would be just under the "handle" at 324.

Utility Index Chart - $4 box

There's also some "electricity" sparking the supply/demand chart in the Utility Index (UTY.X) with a trade at 336. This breaks the downward trend. Using the bar chart and stop at $324 and a longer-term bullish vertical count of $392, there's some good risk/reward for bulls to be looking at.

I need to try putting together a list of potential stocks. Like I said, this action has caught me a bit by surprise. No need to go off half cocked and get wiped out. There is plenty of time to get long. Q-charts has sector lists and I need to check both the "gas" and "electric" utility stocks. Each can move very independent of each other and we need to be in the best group.

I do know that Enron won't be a candidate.

Jeff Bailey
Senior Market Technician
Option Investor

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