UTIL Utilities Weekly Chart; Overbot; Rising Wedge; Negative Divergence; Upper Band Violation

The 15-week weekly trend in the utilities is important since it forecasts the trend in the broad stock market. UTIL is at the lofty 780 level. Counting back 15 weeks, price was in the 700-710 area so clearly the utes remain in a weekly uptrend. The stock market bulls dance with glee. The 50-week MA at 734 is also an important bull-bear line in the sand. The stock market can potentially go into free fall when the UTIL 50-week fails.

UTIL, however, is well above these danger levels. Over the next couple weeks, note how the 15-week look back comparisons increase in price to 720-ish then that 735-740 area forming a confluence with the 50-week MA. Thus, this UTIL 730-740 area is uber important  over the next couple weeks, say during the month of May. UTIL is useful for forecasting the mid-range or intermediate term time frame (weeks and months).

If UTIL rolls over going forward and during the month loses the 730-740 support area, the stock market will be in serious trouble. Utilities either lead or move lower coincidentally with the broad stock market so if utilities begin trending lower, and fall into a weekly downtrend, and then the 50-week MA fails, the bulls will likely scream bloody murder in the weeks forward. So pay attention to what happens with the utilities this month.

Wow, look at that chart. That is a bowl of spaghetti. The overbot conditions, rising wedge and negative divergence helped Keystone call the top in late 2017. Down she went and then utes receive the positive divergence bounce (green lines) during 2018. A stutter-step occurs late 2018 but then all asset classes are goosed higher this year on the ongoing central banker collusion. The central bankers are the market.

The brown circles show twin Tweezer Tops. Humorously, Keystone can say that he has not ever seen that before. Price keeps stalling at the 785-ish level as the chart indicators roll over into neggie d. Money flow is a week behind but the next print will likely be negatively diverged. The MACD line is flat so it is a tricky call. The bulls may try to pop price and get a couple more weeks or so of juice out of the upside. Keystone's 80/20 Rule says 8's lead to 2's so a weekly close above 780 will hint that the 820's and a bull orgy are on the way.

The rising wedge, overbot conditions, upper band violation and neggie d all point to softness ahead. The middle band, also the 20 MA, at 750 is on the table. Perhaps an epic battle is looming for the month of May. Be fearful about what is going to happen to the stock market if the utes roll over and die. If UTIL trends lower for several weeks, the stock market will either be moving lower in unison, or, will follow the utes lower with an up to 2-month lag time. It seems that it would be more coincidental this time around judging by the price action. This works the other way as well. If utilities rally above 8 hundo this month, the bulls will be in their glory days with stocks printing new record highs.

Keystone has been short the utilities for the last month as price chops sideways. Watch utilities closely going forward since they tell you a lot about the intermediate term (weeks and months 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.