I’m still using the Dow Utilities to help me find a bottom for my regular stock market shorts. As you notice on the Dow Utilites Daily chart below it broke down from a bear flag. I’m expecting it to create a double bottom in the next couple weeks on the daily chart and hit its long term uptrend bottom rail.

I also still believe we’ll see a drop to the regular Dow’s 200dma and probably the Nasdaq’s 200dma as well before this is done. The Russell and the S&P have hit their 200dma’s.

Hitting 200dma’s is a very psychological resetting letting everyone know this down move is done and more will get back in with both feet. Then again, the price moving up from here, and leaving behind people like myself and forcing me to chase the price higher is another typical move in a very strong bull market….

Hope it’s the former and not the latter!