UTIL Utilities Weekly Chart; Utes Fail at 50-Week MA at 1063 Forecasting Major Trouble Ahead

The SPX, S&P 500 Index, the United States stock market, prints a new all-time record high today, 1/7/26, at 6965.69, call it 6966. Older folks remember the Summer of 69 and Bryan Adams the Canadian. 'Those were the best days of my life'. Toss me that 6-string. The all-time closing high is 6944.82, call it 6945, on 1/6/26, yesterday.

The euphoria from the holidays continues along with more AI hype, chip hype, Jensen hype, rate-cuts galore, QE as far as the eye can see, and more fiscal and monetary stimulus to fatten greedy wallets. Keystone opened his wallet the other day and moths flew out. He is the one with alligator arms when the waitress brings the bill. No one cares that the Santa Claus rally was a bust this year; it is bad news so no one wanted to report it.

Anyhoo, the chart above is the utilities. The markets remain Psycho with many cross currents but a major negative metric fell today; the UTIL, or DJU, 50-wk MA at 1063. 

The trap-door opens and utes fall through with UTIL dropping to 1048. The SPX falls from its record high at 6966 to 6920 a 46-point pullback. The utility trap-door tells you big trouble is on the way either coincidentally (right now) or within days or a few weeks (month or so) at most. Considering that the stock market has been playing games for 4 months with the topping action, it is about time for the turd to be flushed.

The Keybot the Quant algorithm is tracking utes as the top priority. Bulls need UTIL back above 1063 as fast as possible and they will have no worries with stocks rallying higher. Each day that the utilities remain below 1063, however, is another huge nail pounded into the bull coffin. If UTIL remains below 1063, and the SPX drops only a couple points to below 6919, Keybot the Quant will likely flip short. Pay attention tomorrow. No sleepin' on the job. It may be an exciting day.

There is a lot on the line tomorrow. It is fascinating to ponder that the all-time high today in the SPX may not be seen again for months or years. Sticking to the present, be very afraid going forward if you are long, and it may be time for you to begin clenching your buttocks. 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 Evening at 5:44 PM EST: UTIL is goosed higher this morning to 1083 the bulls celebrating the launch sending the stock market higher to new all-time highs. UTIL faded as the session played out, dropping to 1069 so the same drama is on tap for Monday.