UTIL Utilities Weekly Chart; Utes Fail Again Placing the US Stock Market Back into a Crash Profile

You know the drill since the utes chart has been posted many times in recent weeks. The closing price 15 weeks ago and the 50-week MA at 961.34 are two key metrics. The 15-week lookback dictates whether the utilities are in a weekly uptrend or downtrend and thereby dictate the path of the US stock market. When both metrics fail, a trap-door opens for the stock market and a major substantive down move can occur starting at anytime forward.

If you count back 15 weeks, it is the blue circle at 988. With price at 955, it is a formidable task to get above 988 before week-end. In addition, yesterday, UTIL fails at the 50-wk MA at 961.34 ushering in doom and gloom for the stock market should this dire warning continue.

For next week, the week of 5/1/23, the 988 number becomes worthless and is replaced by the purple circle at 960.60. For the week of 5/8/23, the 960.60 becomes meaningless and is replaced by the brown circle 15-wk lookback comparison number at 967.82.

Are you following this or are your eyes glazing over? Since 960.60 is the key number for next week, of course along with 961.34, you will have a heads-up on next week at 4 PM EST tomorrow. You know UTIL must be above 960.60 by 4 PM Friday when the stock market closes for the week to give the bulls a chance next week.

If UTIL ends this week below 960.60, that tells you that next week is going to start and/or maintain a sour mood. It gets easier for next week. The 960.60 is close to the 50-wk at 961.34. Therefore, take a big purple crayon, because they taste the best, and draw a line through 960-962.

For next week, UTIL must be above 960-962 for the bulls to stop the selling in the broad market. If UTIL is below 960 next week and trending lower, there will be Hell to pay in the US stock market going forward. You can check this week's closing price tomorrow afternoon for UTIL and have a heads-up on next week (since price begins Monday at that level). 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, 4/28/23, at 7:24 AM EST: UTIL stages a late-day rally nudging higher to 963.39 so the crash profile for stocks is back off the table (this whipsaw behavior never occurs but is reflective of the stock market chop suey this year). The 960-962 bull/bear line in the sand is in play for all of next week and at 4 PM EST today you can find out if the bulls, or the bears, have the upper edge.

Note Added Saturday, 4/29/23: UTIL ends the week at 959.61 below the critical 960-962 bull/bear line in the sand that is in effect through next week, so the crash profile for the broad stock market is back on the table going forward. Fun times. The Fed circus comes to town Tuesday and Wednesday so hump day afternoon is when the story will be told by Pope Powell.