UTIL Utilities Weekly Chart

Utilities will tell you a lot about the year ahead for the stock market. UTIL begins the week at 851. If UTIL falls below 832.49 (blue circle), the stock market is in trouble. If UTIL then falls below the 50-week MA at 827, that opens a trap-door in the market and stocks will be flushed sharply lower. Take a purple crayon and draw a thick line through 827-832 range identifying it as the key support level. Purple crayons are Keystone's favorite because they taste the best.

If stocks drop but UTIL does not violate the 827-832 line in the sand, stocks will recover. If stocks rally, but UTIL fails at 832, stocks will turn-around and drop. The 832.49 key level holds true for all of this week.

Next week, the week of 1/18/21, although that Monday is Martin Luther King Jr Day and US markets will be closed, the 832.49 becomes meaningless and replaced by 875.81 (brown circle). Thus, UTIL must rally this week and move above 876 by Friday at 4 PM EST (when markets close for the week), otherwise, the bears are going to win the game going forward. So it is not just a matter of utilities treading water, utes must rally above 876 this week.

If UTIL loses 827, the markets will become very ugly going forward. 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 9:56 AM EST: One-half hour into trading and UTIL slips a bit to the 848 palindrome. No big drama, so far.

Note Added 11:31 AM EST: UTIL 844.

Note Added 12:06 PM EST: UTIL 841. She's dropping like a rock. Get ready, something may be afoot. UTIL is only 8 points above disaster.

Note Added Tuesday Morning, 1/12/21, at 6:37 AM EST: UTIL 843. UTIL drops to 837.12 on the verge of the 836-handle, it was on its knees. Bears only needed another 3 or 4 points to create mayhem but the bulls sent in reinforcements and forced price higher to 843 at the bell. The battle continues. The lower support boundary moves from 827 to 825. Thus, if UTIL loses 832.49, stocks will sink. If UTIL loses 825, stocks may go into free fall. Bulls are fine with UTIL above 833, however, bulls must push UTIL above 876 by the end of the week, otherwise, the stock market will sink next week. Lots of drama in play. Watch this interaction since it tells you the direction of the stock market.