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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (9725)	4/4/1999 6:03:00 PM
From: Les H	Respond to of 99985

Dow Jones Utility Divergence Index Example: At the market low last October, just after the sharp market correction, utilities provided technical analysts with a well-timed "buy" signal. The so-called Utility Divergence Index, which is simply the performance of the Dow Jones Utility Average over the last 20 weeks minus the return of the Dow Jones Industrial Average, soared to a modern record of +26% (the DJUA was up 11% while the DJIA was down 15%), providing a tip-off of a broad market rally to come. That's precisely what occurred. Within three months, the Dow Industrials jumped 24% off their October lows. But then the worm turned. Over the 20-week period ended February 26, the Dow Utility Average returned 26 percentage points less than the Dow Industrials, reversing the previous bullish mode and signaling caution. mfmag.com Have a Nice Day!