The divvy chart illustrates the same theme as the utilities chart. Nothing but solid buying this year. The Fed's money pump has created a juicy bubble in dividend stocks; it is obvious from the chart. The recent buying may be European money bloating SDY ever higher. The blue lines show negative divergence in place, except for RSI and MACD line which want to see another higher high in price. The daily chart is firmly negatively diverged wanting to see a spank down right now. Thus, SDY should pull back now but it will want to come up one more time, then likely roll over.
The red lines show the rising wedge, overbot conditions and negative divergence, textbook TA pointing to a serious collapse, then, instead, the fiscal cliff resolution occurs to stop the failure. Bulls were given a huge gift to start the year. The pumping is reaching a feverish pitch now and the charts are prone to topping and rolling over. It will be interesting to see what all these folks do, that chased divvy stocks with hot money, once the dividend stocks start to sell off. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
