The bears sent the utilities into Hades during February but the bulls stage a major comeback. Both the weekly uptrend in utes (based on the closing price 15 weeks ago; purple circle) and the 50-week MA at 963.72 are taken out to the upside. The 50-wk MA blue line is a trap-door for the stock market so it is a big win for bulls that they climbed back up the gallows and managed to latch the trap-door shut again.
Counting 15 weeks back, UTIL 967.40 is the bull/bear line in the sand for the week of 4/10/23 that determines if utes are in an uptrend or downtrend and this trend impacts the overall direction and trend for the US stock market. Price is at 970.79 when the opening bell will ring on corrupt Wall Street on Monday morning so the bulls are waving flags and throwing confetti all weekend long celebrating their good fortune.
For the week of 4/17/23, the UTIL 967.40 number becomes meaningless and is replaced with 981.27 (blue circle). Thus, several scenarios emerge and each day will further expose the true path forward.
If UTIL remains above 967.40 and 963.72 this week, the bulls are on easy street and the path forward will appear rosy and wonderful for higher stock prices. However, come Friday at 4 PM EST, UTIL needs to end the week above 981.27 to prove that the bulls got game going forward. If UTIL finishes the week ahead below 981, that tells you the week of 4/17/23 will not be rosy. If UTIL finishes the week ahead above 981, the bulls will be celebrating a wild stock market orgy to the upside that will be so obscene it would make Caligula blush.
If UTIL loses 967.40 but then stutters sideways and does not give up 963.72, that tells you the downside does not have much oomph. Utes and stocks will probably recover and UTIL may move back above 967.40. The 967 and 963 numbers are so close to each other that a loss of 963 would be expected if 967 is lost.
If UTIL loses 967.40 and 963.72, major trouble is on tap again since the trap-door reopens. The US stock market will once again be in a major crash profile and worse, the successful back kiss (for utility bears) would confirm that down is the direction ahead sealing the fate of the overall stock market. Thus, within the first 10 minutes of trading on Monday morning, you will know a lot about the stock market.
If UTIL remains buoyant, the bulls will be happy and focus their sights on pumping UTIL over 981 by Friday to create more upside euphoria.
If UTIL loses 967.40 and 963.72, there will be Hell to pay. For now, it is time to enjoy the Easter weekend and play and sing for the cute bunnies At The Hop where the cats and chicks can get their kicks. 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 Friday Morning, 4/14/23, at 6:23 AM EST: UTIL is at 969 after a HOD at 977 yesterday. The 967.40 bull/bear line in the sand number expires today and is replaced with 981.27 for all of next week. UTIL must rally today and end the week above 981 to signal stock market happiness next week. If UTIL finishes today below 981, negativity will be created for the stock market next week.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.