UTIL Utilities Weekly Chart; Utes in a Weekly Downtrend Forecasting Sogginess for Stocks Ahead; UTIL 949 Determines if the Stock Market will Crash

Keystone shines a flashlight under his chin pointing upwards creating an eerie effect as the utilities are discussed. Utes failed last week opening the door to stock market negativity. Over the last 2 weeks, utilities collapse from 1087 (11/27/24) to 1003, a -8% drop, and no one is talking about it except good ole Keystone sitting on a lawn chair enjoying the scenic Laurel Highlands of Pennsylvania. If UTIL drops to 978, only 26 points away, utilities will be in a correction (down -10% or more).

The closing price 15 weeks ago determines if UTIL is in a weekly uptrend or downtrend and that direction typically portends the direction of stocks. Another key metric is the 50-week MA now at the 949 palindrome.

For the week ahead, UTIL 1028.84 is the bull/bear line in the sand (red circle). UTIL begins the week at 1004 so the bulls have a lot of work to do to push the utes above 1029. It gets worse (for the utility and stock market bulls). UTIL must be above 1054 (purple circle) during Christmas week of 12/23/24. You can see in the chart that the closing prices remain elevated after that and UTIL will need to be above these levels to keep the stock market moving higher in the new year; a formidable task.

UTIL is now in a weekly downtrend forecasting bad things ahead for utes and stocks in general. This week is pivotal. The brown line shows price stopping at support from August and as November started. UTIL must bounce, or die.

The stage is set and the light show begins. If UTIL rallies higher and moves up through 1029 this week, the bigtime euphoric stock market upside orgy will continue higher. UTIL, however, must be above 1054 by Friday at 4 PM EST which means utes must rally 50 points in 5 days to keep the stock market rally going through Christmas.

If stocks sell off, but UTIL does not fall below the 50-wk MA now at 949, the selloff is no biggie. Stocks will lose the typical -3% to -5% on a pullback but then rally again.

If stocks sell off and UTIL loses 949, Katy bar the door. We are going down bigtime. If UTIL loses 949, the US stock market will likely crash.

So there is lots of fun ahead. Bulls need UTIL to rally this week above 1029 and then above 1054 before the week ends. Bears need UTIL to continue lower creating a pall on the stock market and then to drop below 949 that opens Pandora's Box of doom and gloom for stocks. What do you think will happen?

The Sports Team got mugged in California. Bummer. They were just in Da Burgh and did an awesome show at Mr Smalls. No one mugged them here. The Drop. 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 Monday Evening, 12/16/24: UTIL drops below 1000 down to 995. The 50-week MA, the trap-door for the stock market, is at 950. Houston, we have a problem. Ground control to Major Tom. Put your helmet on. Commencing countdown engines on. Space Oddity.

Note Added Christmas Eve, 12/24/24: UTIL is at 988 after falling to 964.59 on 12/18/24. The 50-week MA is at 952.74 and controls the fate of the US stock market. 

Note Added Friday, 12/27/24, at 4:31 PM EST: The session ends the day and week with UTIL at 987. Utes continue looking ugly. The 50-wk MA, where Armageddon occurs for the US stock market, is at 952, only 35 points away, so the excitement continues.