UTIL Utilities Weekly Chart; Battle at 975-979 Dictates Happiness or Sorrow for the US Stock Market Going Forward

The battle at the UTIL 50-wk MA at 975.26 continues and is set up for the drama Keystone previously described. The 50-wk MA and the weekly trend in utes dictate the path ahead for the stock market. In a bull market, UTIL remains above the 50-wk MA and the weekly trend is higher, based on the closing price 15 weeks ago.

Alas, UTIL is the opposite supporting bear market action. Utilities fell through the 50-wk MA trap-door which ushers in doom and gloom for the stock market within a zero to 2-month time frame. UTIL is in a weekly downtrend since prices remain below the closing prices 15 weeks ago. This is bad news for the US stock market but price stages a comeback to try and retake the 50-wk MA and close the trap-door.

Look at the battle ongoing for 6 weeks. UTIL walks the 50-wk MA tightrope dipping lower, but then higher, but then lower again. UTIL is going to have to make a decision to bounce or die and it will have serious ramifications for the stock market.

But it gets better, as a television pitchman would say. The weekly downtrend is in question. If you count backwards 15 weeks, the comparison number for this first week of January is the blue circle at 978.52. The plot thickens. UTIL has a chance to regain the weekly uptrend which would be cause for the market bulls to cheer.

Keystone draws the thick line in the right margin with a purple crayon because they taste the best. The purple line is the big showdown this week at 975.26-978.52 call it 975-979.

It is simple. If UTIL fails to move above 975-979 this week, starting at 967, there will be Hell to pay on Wall Street going forward. The stock market will turn bleak and set up for a major crash event.

However, if UTIL regains 975-979 this week, it will be off to the races higher with a big pent-up bull market rally that will knock your socks off. Stocks will catapult higher going forward if the utilities regain the 50-wk MA and reestablish a weekly uptrend.

Note that for the 15-week lookback metric next week, the week of 1/9/23, the 978.52 number becomes meaningless and is replaced with 888 (orange circle). This is an easy bar for the stock market bulls to step over next week which will likely place UTIL back into a weekly uptrend even if it does not get there this week.

Thus, if UTIL keeps chopping sideways between 960-975, the week ahead will be more of the same with stocks; chop suey action and whippy indecision. If UTIL falls apart, and really bad stuff is occurring fast, the 900 level would be an ugly warning. If UTIL falls below 888 over the next couple weeks, the US stock market will be in a major crash profile and set up for an epic negative and historic event to occur. Choose your poison.

If an outcome had to be chosen, and considering the massive negative sentiment in the stock market currently, the expectation would be for UTIL to rally above 975-979 this week. The US stock market is on the line and you will know what is going to happen by watching UTIL over the coming days. 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, 1/4/23, at 8:10 AM EST: The UTIL 50-wk MA is at 975.80. UTIL ends Tuesday at 971. The battle over a handful of points continues.

Note Added Wednesday Evening, 1/4/23: UTIL is at 980 above the purple crayon mark at 975-979. It is a big deal. Will it stick?

Note Added Saturday Morning, 1/7/23: UTIL 981.

Note Added Tuesday Morning, 1/10/23: UTIL 988.

Note Added Sunday Morning, 1/15/23: UTIL is at the 989 palindrome.