Keystone has posted the utilities chart many times so all of yinz must know the routine by now. The closing price 15 weeks ago with utilities dictates if the utes are in a weekly uptrend or downtrend and this directly forecasts overall market direction. In addition, the 50-week MA is key and also dictates the direction of the US stock market going forward.
The 50-week MA failed in January and then the weekly trend turned negative so there was Hell to pay, and it occurred. However, utes stage a comeback rally as the drama around rate hikes continues. Utilities are susceptible to interest rates since they fund major projects worth billions over long periods of time.
If you count backwards 15 weeks you see the blue circle which is 981.27. Bulls got a lot of work to do to get price above 981.27 but if it occurs, it tells you a huge upside rally will be in play. This is not expected but anything goes nowadays.
The 50-week MA is 962.85-962.90 and price is at 956 clearly failing both key metrics. The trap-door for the US stock market flies open again. The stock market is back into a major crash profile.
The CPC and CPCE put/call ratios remain uber low verifying ongoing stock market complacency. Pundit after pundit wax worry and fear but every one of those a-holes are buying stocks 10 minutes later. In other words, you ain't seen fear yet, but you will. The CPC and CPCE will spike wildly vertical to show that the a-holes are actually experiencing fear and panic and that is when you can think about longs, but not now. NO ONE IS WORRIED ABOUT A MAJOR DROP OCCURRING IN STOCKS RIGHT NOW, but you should be (watch where their money is going not what their pie-holes are saying).
Bulls need UTIL above 962.90 immediately after Monday's opening bell, otherwise, the US stock market is in serious trouble going forward with a major drop (crash) in play. 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.
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