Tech Talk for Wednesday May 29th 2019

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Pre-opening Comments for Wednesday May 29th

U.S. equity index futures were lower this morning. S&P 500 futures were down 16 points in pre-opening trade.

The Canadian Dollar was virtually unchanged at U.S. 74.05 cents prior to release of the Bank of Canada’s statement on interest rates at 10:00 AM EDT. Consensus is that the Bank of Canada will maintain its overnight lending rate to major banks at 1.75%.

Bank of Montreal (BMO $103.04) is expected to open lower after reporting slightly lower than consensus fiscal second quarter earnings.

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Canadian Western Bank (CWB $27.88) is expected to open lower after reporting slightly lower fiscal second quarter earnings.

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Canada Goose (GOOS $66.63) is expected to open higher after reporting higher than consensus quarterly earnings.

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EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2019/05/28/stock-market-outlook-for-may-29-2019/

Short Term Breakdowns by U.S. Equity Indices

U.S. equity indices are expected to open lower this morning. They are testing short term support levels. Breaks below these levels will establish short term Head & Shoulders or Double Top patterns. Support levels are:

 

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StockTwits released yesterday @EquityClock

Home Capital Group $HCG.CA moved above $19.31 extending an intermediate uptrend.

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Wheat ETN $WEAT moved above $5.52 completing a base building pattern.

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Scotia Bank $BNS.CA, a TSX 60 stock moved below $69.57 setting an intermediate downtrend. It reported lower than consensus fiscal second quarter earnings.

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Brookfield Infrastructure $BIP.U.CA $BIP moved above $57.06 Cdn and $42.54 U.S. to all-time highs extending an intermediate uptrend.

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Technical action by S&P 500 stocks to 10:00: Bullish. Intermediate breakouts: $AZO $EQR $ICE $RMD $ESS. Breakdown: $PRGO

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Editor’s Note: After 10:00 AM EDT, intermediate breakouts included SLG and BSX. Breakdowns included: MO, K, PM, WRK, HOG, TJX and VFC.

Coffee ETN $JJOFF moved above $9.22 completing a base building pattern.

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Soft commodities are moving higher. Grain ETN $JJGTF (one third each in corn, wheat and soybeans) moved above $22.20.

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Editor’s Note: Strength in corn added significantly to JJGTF.

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S&P/Case-Shiller indicating that home prices in the 20 largest cities in the US were up 0.7% (NSA) in March, stronger than the 0.3% increase that is average for the month.

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Trader’s Corner

 

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for May 28th 2019

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Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for May 28th 2019

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Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for May 28th 2019

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Green: Increase from previous day

Red: Decrease from previous day

 

S&P 500 Momentum Barometer

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The Barometer dropped 6.60 to 36.80 yesterday. It moved to intermediate oversold from intermediate neutral on a move below 40.00 and continues to trend down.

 

TSX Momentum Barometer

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The Barometer added 1.69 to 45.15 from Friday. It remains intermediate neutral and continues to trend down.

 

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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16 Responses to “Tech Talk for Wednesday May 29th 2019”

  1. Larry/ON Says:

    I will join in on the doom and gloom and throw my dart on the area 2600-2650 for an SP500 hard support area.
    Mary – Try an oral vaccine against travellers’ stomach problems. You need to take it two weeks before travel.

  2. Larry/ON Says:

    Semis Reversing To Move Higher – Plus SP500 bounced off the 200day. Looks like support but I would be careful longer term. On the positive side it shows pent-up demand to enter the market. I’m guessing that some of the side-line institutional money is entering the market at this logical technical point. You still have fundamental problems to work out – specifically the trade issue.

  3. Ron/BC Says:

    I see that Dr.$Vix is still bearish the $SPX………..

    https://stockcharts.com/h-sc/ui?s=%24VIX&p=D&yr=2&mn=0&dy=0&id=p12385366676&a=665761377

  4. Ron/BC Says:

    Here is the TLT once again since its breakout. Note the conviction of the breakout. Price didn’t just sneak above the double top with a nose poke like some of the major indexes did recently. It ‘gaped’ above the line and held and gaped up again. That is called a ‘breakaway gap’ or even a ‘runaway gap’ and is very bullish.

    https://stockcharts.com/h-sc/ui?s=TLT&p=D&yr=1&mn=0&dy=0&id=p97314659973&a=654210778

  5. Harry Says:

    Ron/BC——USO possible 10.50$. Thanks for your thoughts.

  6. Ron/BC Says:

    Harry

    Here is a chart of USO. There has been a lot of talk from respectable cycle analysts about a major low in Crude in this time frame with a two year bull market ahead. Hard to believe that looking at the chart. But then again I never have been easily persuaded. Gotta have proof of the pudding……

    https://stockcharts.com/h-sc/ui?s=USO&p=D&yr=2&mn=0&dy=0&id=p60883036674&listNum=1&a=665323464

    https://stockcharts.com/h-sc/ui?s=USO&p=D&yr=5&mn=0&dy=0&id=p66698221556&a=579408560

  7. bruce Says:

    Armstrong has posted a new update……….the dow into june………could you share that with us Gary?……

  8. Harry Says:

    Ron/BC—–Thanks Ron.

  9. Ana Says:

    Ron/BC

    Thank you for your chart on UVXY on the weekend.

    I changed it to my idiosyncratic ways.

    http://schrts.co/gsRUaBry

  10. Ron/BC Says:

    Ana
    Re:#9 You’re welcome.

    That’s what I do all the time!

  11. Ana Says:

    bruce,

    I sent you my target for the head and shoulders on last night’s post.

    One never knows who is reading these posts.

  12. Ana Says:

    So, this certainly does not look good!

    https://www.bloomberg.com/news/articles/2019-05-23/expats-millions-in-life-savings-disappear-from-mexican-accounts

    Also, strike your climb to the top of Mount Everest off your list!

    https://nationalpost.com/news/world/nepal-marks-1st-everest-summit-amid-debate-over-permits

  13. bruce Says:

    tnx Ana
    just saw your target……..my bucket list doesnt seem to be shrinking much……

  14. Ron/BC Says:

    Ana
    Here is your chart back with my oddball adjustments on it. Note the Keltner Channel with a setting of 2.5 is especially timely with touches of the uppper or lower lines. One can even use 3.0 and it works well. Also note the RSI 8 matches up well with the CCI 20. And I like the RSI 21 on the bottom for above or below the 50 line. Sometimes it’s just plain choppy but a lot of the time it is very good for defining a bullish or bearish ‘trend’.

    https://stockcharts.com/h-sc/ui?s=UVXY&p=D&yr=1&mn=0&dy=0&id=p33328053470&a=667400273

  15. GARY Says:

    Bruce #7

    Here is the Armstrong post

    The Dow rallied but as I pointed out, it was not in a breakout mode since the energy was declining as it was making new highs. But it also retested the former uptrend line and that was also a bearish indication. We now have two weekly sell signals at 25372 and 25207. If these are elected, then it becomes possible to test the 23000 area going into June. We still see an important turning point come this summer so let’s pay attention to the arrays and the reversals.

  16. bruce Says:

    tnx Gary……

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