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

The market bulls are winning the battle at the important UTIL 50-week MA at 719.62-ish. The bulls managed to close the trap-door and avoided falling through. The drama continues. If UTIL 719.62 fails, the stock market will be in trouble. The end of year positive seasonality and Santa Claus rally has been buoying stocks this week.

The blue circle is 726.63 an important number for all of next week. Bears will be okay if they keep UTIL below 726.63 and then below the brown line for the week of 1/8/18. Of course, if the bears can push UTIL under the 50-week MA at 719.62 this sets the stock market on a troubled path ahead.

Conversely, if UTIL rallies above 726.63 today and closes the week above the bulls will be planning a joyous upside rally next week. Tax-loss selling did not occur this year in early December since taxes will likely be lower in 2018 so there may be a bunch of selling occurring in the stock market to begin the year.

If UTIL remains between 719.62 and 726.63, the stock market will stumble along sideways with a slight upward bias. If UTIL moves above 726.63, the bulls will ramrod the stock market to new record highs. If stocks rally but UTIL does not move above 726.63, stocks will roll over to the downside. If UTIL drops below 719.62, the trap-door opens for equities, and, since the utilities have been playing around at this level already, this time a sharp failure may occur and send stocks sharply lower in quick order. So utilities are very important as the new year begins.

Ditto volatility. Market bears need VIX above 10.43 which will signal stock market trouble. The Keybot the Quant algorithm remains long but if either utilities or volatility turns bearish as described, either one would do, and if the SPX drops below 2683, Keybot will likely flip short. S&P futures are up +10 about one-half hour before friday's opening bell.

Today is EOM, EOQ4, EOH2 and EOY2017. The monthly charts receive new data points today. 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 New Year's Day: The drama with utilities continues into the new year. For the week of 1/2/18 through 1/5/18, UTIL 719.63 and 726.63 are important. UTIL price begins at 723.37 to create theatrics. If UTIL fails through 719.63, the stock market ill likely go into a mini free fall. If UTIL moves above 726.63, the stock market will be floating higher to new record highs. If 719.63 fails, run for your life.