UTIL Utilities Weekly Chart; Battle at the 15-Week Lookback at 856.13

Utilities are important these days. The bulls stage a 3-week rally overcoming the 50-week MA at 829 which is a trap-door for the stock market. The 50-week MA is key and also the closing price from 15 weeks ago which dictates whether UTIL is n a weekly uptrend, or downtrend. The stock market will move in the same direction and utilities are key in developing intermediate term (weeks and months) forecasts.

The 15-week lookback number for this week is 856.13. Next week is 855.10, and the week after that 857.26, so for the next 2-1/2 weeks, the stock market bulls will be joyous if UTIL remains above 855 which says utes are in a weekly uptrend and so should stocks. UTIL is at 859 and the two key levels are the 50-wk MA at 829 and the 15-wk lookback comparison number of 856.

If UTIL remains above 856-857 over the next 2 or 3 weeks. the bulls will be dancing in the streets, singing songs and carryin' on. The stock market will be marching higher and joy will be occurring throughout the land.

If UTIL slips below 856, that is when you are going down the road and you start hearing clanging noises from the motor or underneath the car. You know there is a problem and you have to pull over and assess things. If UTIL slips below 856 and remains below for the days ahead, that spells trouble for the stock market.

If UTIL drops below 829, the trap-door opens, and the SPX would be expected to drop about 30 handles within an hour and the market will take on a decidedly negative tone. A weekly downturn in the trend is trouble and when the trap-door opens, it is over. The stock market will be falling in earnest and a crash is on the table. The 15-week lookback and 50-wk MA failure will usher in a multi-month period of weakness for the US stock market.

The sideways channel is key so stock market and utility bulls win if UTIL pops above 875 while the bears will be ripping the bull's faces off if UTIL falls below 8 hundo. Note that the 20-wk MA is at 856.52 which forms a confluence with the 856.13 and may create a magnetic effect to pull price down for at least a test. What scenario will occur?  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 Morning, 3/18/21: UTIL drops -1.3% to 847.92. Federal Reserve Chairman Powell promises easy money forever.

Note Added Sunday, 3/28/21: The bulls knew the seriousness of the situation so they step in and pump utilities to the moon sending UTIL to 874. Nothing to see here, move along, move along.