UTIL Utilities 5-Minute Chart

There is lots of drama occurring with the utilities right now and that behavior with the utes is the greatest impact on current broad stock market direction. The Keybot the Quant algorithm remains long but is champing at the bit to go short. The move forward depends a lot on the UTIL 880.50 bull-bear line in the sand, identified by the quant. It is not rocket science. The level is dictated by the closing price 15 weeks prior and this market forecasting tool has much of its roots in Norman Fosback's work decades ago provided in books such as Stock Market Logic.

UTIL was going to be squeezed big by the tight purple standard deviation bands (arrows). Tight bands forecast a huge price move but do not forecast direction. This move was upwards and UTIL jumped big out of the gate yesterday. UTIL runs up to ring the bell at 880.50. Ding, ding. Price receives a spank down but the bulls were not finished. The only way that the stock indexes will make more new record highs is if UTIL moves above 880.50 and stays above. You can see that price pops up above 880.50 but is smacked down below each time and finishes at 879.69 a big win for bears (despite the stock market rally).

The stage is set for the Tuesday opening of the Wall Street casino. Watch UTIL 880.50 like a hawk; it is for all the marbles. If UTIL remains below 880.50 and begins trending lower day after day, week after week, the stock market will be dropping like a stone and on a sustainable basis (multi-months). If UTIL pops back above 880.50, and remains above, trending flat to higher, the bulls will keep printing new all-time record highs in stocks. Who will win today, but, more importantly, who will win on the intermediate term basis (weeks and months) going forward? The utilities are a big deal right now. 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 10:31 AM EST: The epic stock market drama continues. History is being written everyday but few realize it. UTIL popped above 880.50 again, but the bears clawed it to the ground again now printing 879.24. This is a bigtime battle as Keystone discusses above. The UTIL 880.50 has a huge say in what will happen to the stock market in the days, as well as many weeks, ahead. Here she comes for another test...... 879.87 .... 879.55 .. 879.63.... Since the drama is intense and the battle is a couple days old, when the decision is made the price reaction in the markets may be very dramatic and quick.

Note Added 1:47 PM EST: UTIL is at 877.85 remaining under the important 880.50 level.


Note Added 5:31 PM EST: UTIL is at 881.99 goosed above 880.50 in the final 5 minutes of trading. Bulls cheer and form a congo line celebrating the upside fuel they will receive from the utilities, however, tomorrow is another day. The bears have their work cut out for them. Bears better smack UTIL under 880.50 as soon as possible or their goose is cooked.