Chart of the day: Upward utility

US utility companies produce an income stream with many similarities to a top-rated bond. For this reason this index sometimes trades like other companies yet often behaves differently to the Dow Industrials or Transports, with expectations for the Fed to raise rates this year causing the sell-off between the first and third quarters of this year. This took the shape of an A, B, C-type correction where C is 61 per cent the height of A, taking it down to the bottom of the Andrews Pitchfork that has dominated since late 2008. Closing above its central line last week, correcting half of previous losses, the index should consolidate around 595 before a spurt to the top.