UTIL Utilities Weekly Chart

The stage is set for the final act. The utes over the next couple weeks or so will decide the fate of the US stock market ahead. The 50-wk MA and the closing price on a weekly basis 15 weeks ago are what matter. 

The 50-wk MA is at 978.40 and price is at 953.61 clearly below which is a bearish signal for the stock market. It would be bullish joy for the stock market if UTIL rallies and overtakes 978.

The closing price 15 weeks ago, which determines the weekly trend of the utilities, is at 927.43 a key number for the holiday-shortened trading week ahead (red circle). Disaster will occur for the stock market if 927 is lost in the days ahead. The US stock market would go into a crash profile where a serious negative event will begin either in unison with the ute failure or within a few weeks time.

If UTIL does not take out 927, the 939.33 level is key (purple circle) for the week of 2/27/23 and 927.43 becomes meaningless. Same dealio. If 939 fails during the week of 2/27/23, there will be Hell to pay going forward.

If UTIL does not take out the 939.33 number, the next 15-week lookback number is up to 972.06 (blue circle) and the 939.33 becomes meaningless. This is at the 50-wk MA for all the marbles. Not only that, look at how price hugs the 50-wk MA for many weeks which provides 15-wk lookback comparison numbers for March and April.

It is easy to develop scenarios and it is likely that UTIL will tip its hand over the next couple weeks and show where the stock market is headed. What's all this mumbo-jumbo this guy is talking about? I think he is making it up. Is he? I don't know, it sounds like he knows what he's talking about.

UTIL begins 2/21/23 (US markets are closed on Monday, 2/20/23 on Presidents' Day) at 954. If UTIL rallies and takes out the 50-wk MA at 978-979 anytime going forward, it is blue skies and rainbows ahead for the bulls. Stocks will rally going forward and if UTIL remains above the 50-wk MA, a serious negative downturn for the stock market this year would be taken off the table.

For the week of 2/21/23, if UTIL drops below 927, the US stock market will fall apart and potentially crash going forward. If UTIL does not drop but perhaps staggers sideways, watch the action at 4 PM EST on Friday as the week ends since UTIL must be above the 939.33 that will go into effect for the week of 2/27/23. If next week ends with UTIL remaining above 939, the bulls will be looking pretty good and then continuing to hope that UTIL continues higher to overtake the 50-wk MA.

If, however, on 2/24/23, UTIL ends the week below 939.33, that means the utes are going to create negativity in the US stock market come Monday morning, 2/27/23. You get the idea of what is going on. This activity explained above will tell you if the stock market is going to have a serious crash or not this year.

If UTIL loses 927 in the days ahead, and you have stayed long the stock market through thick or thin, you will be bludgeoned. If UTIL rallies above 978-979 at anytime going forward, the stock market bulls will have a big party. 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 Sunday, 2/19/23: UTIL finishes the week at 954. Bull victory is up at the 50-wk MA at 978-979. Bear victory is at 927 for the week ahead or 939 for the following week. Who will win? Sideways chop suey through the 940-977 range is non-committal. UTIL will choose the winner in the days ahead; there will be a commitment one way or the other and it will tell a lot about the stock market going forward.

Note Added Ash Wednesday Morning, 2/22/23: UTIL is at 939; isn't that something? Watch to see if UTIL loses 427 this week and if it ends the week above or below 939 since it tells you a lot about the US stock market.