UTIL Utilities Weekly Chart; Overbot; Rising Wedge; Negative Divergence; Upper Band Violation; Price Extended; Potential Tweezer Top

Keystone continues to like utilities on the short side but keeps taking his lumps each day. Here's some more. Slap, slap. Utes are key since they will tell you if the long multi-month and multi-year down move for the US stock market has begun. If the utilities move lower a month or two before the stock market, or coincidentally lower with the stock market, that tells you that the downside in equities is extremely real and serious blood shed is ahead. If stocks roll over lower but utes remain buoyant, equities will then likely recover.

The monthly charts for indexes and sectors continue indicating a multi-month and multi-year top occurring now. The utility weekly trend is identified by looking back 15 weeks and comparing prices. For the week ahead, UTIL must drop below 806.60 to begin a weekly downtrend. Price is at 847 so the bulls are feeling pretty good about themselves. Next week, the comparison number will be 815.55 so watch this 806-816 area closely this week.

The 50-week MA at 773, and rising, is key. This represents a trap-door for the stock market should prices begin falling steadily. But before this dire outcome occurs, market bears will first need to violate the 807 area this week.

Note the long candlestick shadows for the last two weeks indicating a potential Tweezer Top (brown circle). When price action prints a tweezer at the highs, or at the lows, that typically indicates a trend change. Wow, that is a horrendous red rising wedge. The drops from rising wedge patterns can be quite dramatic and bloody.

The red lines show universal negative divergence across all indicators wanting to see a pullback. The chart is overbot agreeable to a pullback. Price is extended above the moving averages so a mean reversion lower is desperately needed. UTIL violated the upper standard deviation band so the middle band at 816.50 is on the table, which is in that 806-816 window mentioned above. How do you like them apples?

The UTIL monthly chart is also topping out with neggie d. Everything says down but utes have momentum and traders and investors believe they are hiding in a safe place with a dividend; in actuality, they are only covering themselves with a fig leaf.

The Fed and other central bankers have destroyed the business cycles over the last decade-plus with their obscene Keynesian money-printing. These sick central bankers financially-engineered the longest economic expansion in US history to protect the wealthy elite class at the expense of the middle class (now lower middle class), poor, disadvantaged and future generations. Human greed. The crony capitalism system gone amuck. One ponders what the market, economy and society will look like a year or two from now. What degree of ugly? 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.