UNITED TECHNOLOGIES ACTING AS A DRAG ON THE DOW – IS THIS LIKELY TO CONTINUE?

United Technologies (NYSE: UTX) shareholders have had to go into endurance mode as the stock is apparently going through an extended consolidation / corrective phase following the nice rally that took place from mid-2012 until the Spring of 2014. How are the fundamentals with UTX and how long will this correction last?What the bulls see in UTX...• Cheap valuation metricso Price to book of 2.87o Price to sales of 1.51o Enterprise value that trumps its market capitalization• 10% net profit margins that translates to over $4.3 billion in annual levered free cash flow• Current ratio of 1.22 and a debt-to-equity ratio of around 56% • A nice dividend yield of 2.2%What the bears see in UTX…• Relatively bearish technicals that project UTX shares down to $103.79 and possibly even down to $97.60. • Very modest revenue growth of only 4% expected for 2015• Expected earnings growth of only 8.26% – which makes the seemingly cheap P/E of 15 not quite as attractive as it was on the surface.Technically speaking on UTX…United Technologies sets up bearish in the short-term according to technicians. Resistance comes in at $110.34 and support comes in at the August low of $103.79 – for starters. If that level fails – which is entirely possible given the increased volatility in the market recently – the next two levels of support come in at $99.79 and $97.60. Overall…The bears may have the edge in the short-term with the possibility of the stock tumbling back down to at least $103.79 and possibly even down to the long-term uptrend line way down in the mid $90s if things get really bad. However, if support at any of the levels listed above or even the $93 - $94 range (where the uptrend line comes into play), the stock could turn back to the upside and mount a nice rally. The key here with UTX is to try to buy the stock at or near support and to honor stop loss triggers should they be hit.