UTIL Utilities Weekly Chart 50 Week MA

Keep a close eye on the 50 week MA, now at 415.30. This represents a trap door for the equities markets. If the 50 week MA is lost, the equities markets typically go into free fall. If the 50 week MA holds, then any selling event for the broad markets will be short-lived. Note the indicators are sloping lower which means on a long term basis, lower prices are expected. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.

Note Added 9/6/11 at 9:35 AM EST: UTIL at 415.52 loses the 50 week MA at 415.61. The 50 week MA fluctuates in real-time so keep watching.  If this failure holds, the equities markets are in danger of a full collapse.  If UTIL recovers back above the 50 week MA, the selling will subside and markets will recover. UTIL now at 415.87 back above the 50 MA at 415.62. Market bulls are fighting back and not giving up. Keep watching, this utilitiy price versus 50 MA will tell the story today.

Note Added 9/6/11 at 9:56 AM EST: High drama. At 9:47 AM, UTIL lost the 50 week MA. This typically has to hold for several minutes and if so, it signals that the equities markets will go into free fall. Keystone's proprietary algo, Keybot the Quant, was only seconds away from signaling this event, when, at 9:54 AM, the day was saved, at least so far.  UTIL, now at 417.13, is a point and one-half above the 415.65 level representing the 50 week MA. Continue to watch this closely today. The equities markets were within seconds of collapsing but now are mounting a comeback. Keep watching this valuable tool. If UTIL continues up, we probably saw the lows in equities today.

Note Added 9/6/11 at 5:44 PM EST: Today played out in the first half hour of trading. Once UTIL regained the 50 week MA at 9:54 AM the fix was in, UTIL headed up the rest of the day and so did the broad markets. The indexes were only seconds or minutes away from going over the falls before the invisible hand saved them.  Isn't it interesting that the bulk of traders, and definitely the general public, are completely unaware of this drama?  UTIL closed the day at 424.24, comfortably eight and one-half points above the danger level of 415.79.  This drama will be revisited in the days and weeks ahead, perhaps September, or October, or November, so learn the lesson today and watch the UTIL 50 week MA as time moves along.