UTIL Utilities Weekly Chart; Battle Continues at the 50-Week MA Trap-Door

The stock market tanked in Q4 2018; a mini-crash. The utilities prevented an all-out crash. If UTIL would have been trending lower when the stock market fell apart, equities would be far lower in price right now. As the chart shows, UTIL rallied higher into the mid-December top. The closing price 15 weeks ago is key since it determines if UTIL is in an uptrend or downtrend and this influences the broad stock market. The 50-week MA, now at 709.83, is also critical since it represents a trap-door in the stock market.

Thus, for the week ahead, if you look back 15 weeks, UTIL was at 733.73. This number is key for the week ahead. If UTIL rallies above 733.73, it proves that the upside rally in the stock market is the real deal and it has strong legs higher. With price at 714, utilities are in a weekly downtrend and that is not good for the broad stock market. That neggie d spankdown off the top a month ago (red lines) is ominous. Utilities are now tanking coincidentally with the broad stock market. A weekly downtrend in the utes, forecasts that the broad stock market will drop either coincidentally or within two months time. When stocks retreat again, the utes will likely cooperate this time, which means the downside flush will be dramatic and have crash potential.

If UTIL loses the 50-week MA at 709.83, the crash and Armageddon scenario is on the table. Watch it like a hawk in the week ahead. Algorithms, such as Keybot the Quant, have these utility parameters built into the models so a loss of that 50-week MA is a major big deal.

Price violated the lower standard deviation band so the middle band, at 730, is on the table and this is very near the 733.73 bull target mentioned. The stage is set. Either the bears are going to flush this puppy lower under 709.83 to begin market mayhem, or, the bulls will keep UTIL above 710 and moving higher to test the bull breakout at 734. The stock market will move higher if utes decide to move higher. 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.