Tuesday, September 25, 2018

UTIL Utilities Weekly Chart; Battle at 50-Week MA

Always remember, the old-timer's watch two key numbers for the utilities; the 15-week lookback number and the 50-week MA. The price from 15 weeks ago determines if the current week is in an uptrend, or not. If UTIL is in an uptrend, then the broad stock market will likely head higher as well. If utes are in a weekly downtrend, the broad stock market should weaken as well. The 50-week MA is a trap-door in the stock market where bad things will happen once it is opened.

The 50-week MA is at 710.80 and failed today but the bulls managed to push UTIL back above and close the trap-door. Price is at 711.83 so watch this closely on hump day. If 711 fails, stand ready for a potential sharp flush lower in the stock market, quick and bloody. In addition, if UTIL fails below 711 and remains below, the stock market will likely underperform for many weeks and months ahead. The stock market bulls will throw confetti if UTIL runs higher up and away from the 50-week.

The brown circle show the close from 15 weeks ago at 678-ish. If 711 fails, that is trouble, if 678 fails this week, that will be carnage. The blue circle shows the 15-week lookback comparison number at 697-ish for next week 10/1 thru 10/5 and the purple circle for the week of 10/8 thru 10/12 at 712. The stock market will be in huge trouble if UTIL 678 fails this week, or 697 next week, or 712 the week after.

If UTIL begins rallying higher ending all the above drama for now, that likely says THE stock market top will be delayed into the October-December time frame rather than right now September-October. If UTIL starts sliding south, it spells big trouble for the stock market directly ahead. 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 Thursday, 9/27/18: UTIL failed at the 50-week MA at 710.80 yesterday. UTIL price is currently at 708. This spells trouble ahead for stocks but the battle will continue.

Note Added Friday, 9/28/18: UTIL regains the 50-week MA at 710.80. UTIL price is currently at 717. The bulls are smiling but the battle continues.

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