Tech Talk for Wednesday May 2nd 2018

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Pre-opening Comments for Wednesday May 2nd

U.S. equity index futures were mixed this morning. S&P 500 futures were unchanged in pre-opening trade.

Index futures were virtually unchanged following release of the April ADP employment report. Consensus for April private employment was 193,000 versus 241,000 in March. Actual was 204,000.

First quarter earnings continue to pour in. Reports released since yesterday’s close included ADP, Amerisource Bergen, Apple, Chesapeake Energy, Clorox, CVS, Este Lauder, Garmin, Gilead, Humana, Juniper Networks, Loblaw, Lululemon, Mastercard, Molson Coors, Mondelez, Snap, T-Mobile,Yum Brands, Wyndham Worldwide and Zoetis.

Apple gained $6.42 to $175.52 after reporting higher than consensus quarterly sales and earnings. The company also announced a $100 billion share buyback program.

Facebook (FB $173.72) is expected to open higher after announcing plans to enter the dating service industry.

Snap plunged $2.74 to $11.39 after reporting lower than consensus quarterly results. Target price was lowered by RBC Capital, SunTrust and Wedbush.

EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/05/01/stock-market-outlook-for-may-2-2018/

Note seasonality charts on Staples sector relative to Consumer Discretionary sector, Industrial sector, TSX Financial sector, Canadian GDP and Construction Spending.

Observations

Continuing strength in the U.S. Dollar Index and its related ETN finally had an impact on commodity prices and commodity stock prices. See commodity section below.

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Other major currencies were under technical pressure. The British Pound dropped below137.12 completing a double top pattern.

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StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:30: Bearish. Breakouts: $SPG. Breakdowns: $AMP $HCA $VRTX $CMI $LLL $ PCAR $STX $AYI

Editor’s Note: After 10:30 AM EDT, breakouts included PSA, HCP and ARE. Breakdowns included GILD, WAT, SNA, INCY and CME.

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Cameco $CCJ $CCO.CA, a TSX 60 stock moved above $14.06 Cdn. extending an intermediate uptrend.

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Silver ETN $SLV moved below support at $15.19.

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‘Tis the season for weakness in Silver until the end of June!

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Coal ETF $KOL moved below $15.25 extending an intermediate downtrend.

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Aerospace/Defense ETF $PPA moved below $55.24 completing a double top pattern.

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‘Tis just before the season for weakness in the Aerospace/Defense industry to October.

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Ameriprise Financial $AMP moved below $140.10 extending an intermediate downtrend.

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‘Tis the season for weakness in Ameriprise Financial $AMP to the end of June!

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Paccar $PCAR moved below $62.82 extending an intermediate downtrend.

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‘Tis the season for Paccar $PCAR to move lower to the end of June!

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Industrial SPDRs $XLI moved below $71.20 extending an intermediate downtrend.

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‘Tis the season for the U.S. Industrial sector to move lower to October!

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Gold ETN $GLD moved below $123.57 completing a double top pattern.

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South Africa iShares $EZA moved below $63.93 completing a double top pattern.

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Canada GDP up 4.7% (NSA) in February, marginally better than 4.5% average gain for month. #CDNecon #CAD $MACRO

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U.S. Construction spending up 2.0% in first quarter, firmly above 0.8% average increase. #Economy $MACRO

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Trader’s Corner

Daily Seasonal/Technical Equity Trends for May 1st 2018

spx may 2

Green: Increase from previous day

Red: Decrease from previous day

 

Daily Seasonal/Technical Commodities Trends for May 1st 2018

crb may 2

Green: Increase from previous day

Red: Decrease from previous day

* Excludes adjustment from rollover of futures contracts

 

Daily Seasonal/Technical Sector Trends for May 1st 2018

xlk may 2

Green: Increase from previous day

Red: Decrease from previous day

 

S&P Momentum Barometer

The Barometer slipped 0.40 to 46.00 yesterday. It remains intermediate neutral.

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TSX Momentum Barometer

The Barometer added 0.41 to 64.46 yesterday. It remains intermediate overbought.

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Disclaimer: Seasonality and technical ratings offered in this report and at

www.equityclock.com are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed

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6 Responses to “Tech Talk for Wednesday May 2nd 2018”

  1. Ana Says:

    $SPX $ES

    Movements inside the triangle are limited now. My best guess…

    First to the Downside 2630ish (200 sma 2623, 200 ema 2618)

    Then to the Upside 2666ish

    Looking to charts for any breakout and false breakout???

    Variables are the news with Trump, Nafta, Tpp

  2. Ana Says:

    $SPX $ES

    Made it there in a hurry!

    So maybe going for a weekly 2560 ish

    So maybe going for the target from head and shoulders 2500 (thinking this is too much without bad, bad news)!

  3. Sherri Says:

    Armstrong on the USD:

    “The amazing level of bearishness in the dollar appears to have set the stage for a real blood-bath. We have now reached May and the dollar has been rallying steadily. We have not yet elected a Monthly Bearish Reversal in the Euro, which lies down at 11550, but we did elect a Weekly Bearish. At this point we are flirting with the second Weekly Bearish at 11995.

    With Italy unable to form a coalition government, the Five Star movement called for a snap election in June. The government is ruling out a snap election because they know they will lose.Here is the weekly Array into July. Both May and June are important targets and this will probably bring about the end of the consolidation period we warned about for the first half of 2018.

    This is also why we made the Singapore WEC for June. It is an important launch pad overall. Now we have the possible Italian election if a stopgap government cannot come together. The Five Star Movements ultimately wants to exit the Euro.

    So for now, a weekly closing below 19995 will signal this is continuing and a monthly closing below 11550 will warn that the dollar may begin to rise and that appears headed toward a major high going into 2020/2021.”

  4. Sherri Says:

    Armstrong on the DOW:

    “The Dow at least made a new low during April so that qualified as a 3 month reaction on an intraday basis but not on a monthly closing basis leaving March as the lowest monthly close. The market is still trading based upon the decades of propaganda from the talking heads on TV that higher interest rates are bearish. They have never looked at a chart with the two side by side.

    The Weekly Bearish remains the underlying support to watch at 23250. We remain in a consolidation period into June. We will be address that on a video for those who purchased the Share Market Report.”

  5. bruce Says:

    tnx Sherri……

  6. Ana Says:

    Thank you, Sherri!

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