UTIL Utilities Weekly Chart; 50 MA Cross

UTIL lost the 50-week MA at 650 last week, the trap-door, which portends bad news for the stock market for the weeks and months ahead. Utilities also remain in a weekly downtrend which forecasts trouble ahead in the weekly and monthly time frames. The last failure of the 50-week was in 2015 when markets were soft. At the start of this year, UTIL regained the 50-week MA, closing the trap-door, and never looked back. The stock market bottomed in February this year and never looked back. The Dow Industrials print a new all-time record high last week.

The red rising wedge, negative divergence with the indicators, and overbot stochastics conspired to predict and create the peak and subsequent spankdown off the top starting in the summer time. The price 15 weeks ago was 690-ish (brown circle) so if UTIL remains under this level, which is likely, utes remain in a weekly downtrend forecasting trouble. UTIL came down and bounced off the 50-week (purple circle) a month ago so the bulls saved the day but this week the failure occurs.

The histogram, stochastics and money flow want to see a bounce in price but the RSI and MACD line are weak and bleak wanting a lower low in price after any bounce occurs in this weekly time frame.

As mentioned in the NYA chart, you can monitor two key indicators if you are an intermediate term trader (weeks and months). The NYA is above its 40-week MA signaling an ongoing cyclical bull market in stocks. UTIL is under its 50-week MA opening a trap-door for stocks. One of them will be wrong going forward. Bears will celebrate if the NYA drops under its 40-week MA while bulls will celebrate if UTIL moves back above its 50-week at 650. 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.