UTIL Utilities Weekly Chart Channel Critical Levels Highlighted

The red line at 447 is key this week; bulls must remain above 447 otherwise the broad markets are in serious trouble. If that does not occur, the blue line at 446 is important for next week, the week of 3/26/12. If that does not occur the green line at 463 is important for the following week of 4/2/12.

The 50-week MA is critical for the utilities and signals that the broad markets are likely in, or about to fall into crash mode. The markets were going over the falls in summer 2010 (50-wk MA failure) but Chairman Bernanke stepped in with QE2 to save the day. The August 2011 crash also violated the 50-wk MA and the November 2011 bottom also teased failure but Chairman Bernanke is quick to say that the Fed will provide support, the low rates are in place until late 2014, the LTRO1 was in planning and the markets were saved again. The pink line highlights this 50-wk MA danger level at 439 and rising, simply remember 440 to make it simple.

The black lines show the negative divergence that easily forecasted the top in utes as the year began. Thus, for this week, week of 3/19/12, watch to see if the 20-wk MA at 450.28 fails, this is a signal of trouble coming. A loss of 447 is serious trouble and Keystone's proprietary algorithm will likely flip to the short side. Note how this level matches up with the lower rail of the teal channel which would also signal broad market failure coming. Then a loss of the 50-wk MA at 439-440 will signal a broad market crash is likely and the market failure would occur quickly after the 50-wk MA would fail (think minutes or within an hours time). The stochastics lost the 50% level, bearish, watch to see if the RSI loses the 50% level. UTIL requires close continuous monitoring in real-time moving forward. For this week, failure at 447 is big trouble and 440-ish signals a broad market melt-down in progress or at the doorstep. 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.