UTIL Utilities Weekly Chart; Battle at 50-Wk MA at 975 Dictates the Path Forward for US Stock Market

The last posting and chart for UTIL, here is the link, surmised that UTIL is likely not done testing the 50-wk MA at 975-ish, and here she is.

Now the rubber meets the road. The 50-week MA at 974.95 is the trap-door for stocks and bulls need to stay above and latch the door closed again so a bull rally can begin. If utes move higher, the US stock market is going to rally.

If utes fail from here with UTIL falling back down through 974.95, and the trap-door reopening, it's all over but the crying. Stocks will tumble lower.

If UTIL remains above 975, the stock market will be rallying. If UTIL then moves above 1012 this week, the upside rally will go bigtime with stocks catapulting higher.

For the first trading week of the year in January, UTIL 1012 no longer matters and is replaced with 979. If UTIL remains above 975 this week and then above 979 next week, the bulls will be off to the races sending the stock market strongly higher. It gets easier since for the week of 1/9/23, UTIL only has to be above 888 to create positivity in stocks but the bulls will want price to remain above the 50-wk MA at 975 to create maximum upside juice for stocks.

The set-up favors bulls. If the bears want to flex their muscles, they need to jump on the downside quick and immediately send UTIL below 975, otherwise, the bears got nothing and will fold like a cheap suit.

If UTIL remains above 975 for the next couple-three weeks, it tells you that a big downdraft in the US stock market, that everyone and his bro now expects early in the year, will not occur. A big rally will result as the traders rush to cover. If UTIL moves higher, it tells you that the next big drop in stocks will occur later into 2023 not as the New Year begins.

Watch UTIL 975 like a hawk; it will tell a lot about the stock market in the near-term and for the long-term. Keystone does not have any utility trades on right now long or short. 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 Wednesday Morning, 12/28/22, at 6:30 AM EST: UTIL 982.

Note Added Monday Morning, 1/2/23, at 7:00 AM EST: UTIL 967.