The bulls are standing over the trap-door at the gallows once again. The UTIL 50-wk MA at 985.68 is a key metric for the stock market; call it 985.50-985.70. If price fails at this level, the trap-door opens and the US stock market falls into Hades. Since it has been teasing the trap-door open and shut in recent days, if it fails, it may lock itself into the downside this time.
The fate of the stock market is in the hands of the utes. If UTIL can bounce from here and stay away from the trap-door, and begin to trend higher, the stock market pullback is a run of the mill pullback and should not be a big deal. It does not mean a relief rally will start immediately, just that the rally is on the come and the dire scenario of Armageddon will be avoided.
If UTIL fails at 985.60-ish, it is over. The trap-door will fling open and the stock indexes will be hung, then tossed into Hades and then dragged through the firey pits. That does not sound pleasant. Stop Draggin' My Heart Around. If the trap-door opens, the stock market has a long way lower ahead.
Choose your poison. If you are one of the consensus, and continue to hold all your longs and proclaiming that stocks will recover, as you wipe beads of sweat off your forehead, and the trap-door opens, you are going to lose a lot of money. Bulls root for utilities. Bears root for utes to collapse. 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.
Note Added Saturday, 3/15/25: UTIL teased failure at 986 but the bulls save the day and keep the trap-door shut, for now. UTIL runs higher to 1010. The broad stock market recovers on Friday. For the week ahead, bulls win bigtime with UTIL 1035.53, while bears will begin a new round of market carnage with UTIL 986. The market makers parked price exactly in the middle.
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