UTIL Utilities Weekly Chart

The utes were the last piece of the puzzle the bears needed to complete their reign of terror to the downside. The weekly close 15 weeks ago dictates whether utes are in a weekly uptrend, or downtrend, and this corresponds to where the broad stock market goes. In addition, the 50-week MA is key. These numbers are important because they have been used by traders for many decades. In addition, many algorithms, such as Keybot the Quant, program these two parameters into their models.

15 weeks ago, UTIL ended at 733.60. This level remains key all week. If price remains above 733.60, utilities remain in a weekly uptrend and the stock market should recover and float higher. If the 733.60 fails, the stock market will be in trouble. If the 50-week MA at 709 fails, think of that like a trap door, the broad stock market will very likely crash. UTIL ends today at 732.21 a point below the critical 733.60 ushering in stock market negativity.

The 733.60 is important for all of this week but then the 15-week lookback number will be the brown circle at 736.88 next week. So bulls will need to be above 736 during next week's trading to help generate a relief rally for equities and that will be during the Santa Claus rally period between Christmas and New Years. 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.