Tech Talk for Wednesday May 18th 2022

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Pre-opening Comments for Wednesday May 18th

U.S. equity index futures were lower this morning. S&P 500 futures were down 28 points in pre-opening trade.

Equity index futures were virtually unchanged following release of U.S. April Housing Starts at 8:30 AM EDT. Consensus was a slip to 1.783 million units from 1.793 million units in March. Actual was a drop to 1.72 million units.

The Canadian Dollar was virtually unchanged at US78.04 cents following release of Canada’s April inflation report at 8:30 AM EDT. April Consumer Price Index was expected to increase 1.0% versus a gain of 1.4% in March. Actual was an increase of an increase of 0.6%. On a year-over-year basis, April CPI was expected to increase 6.7% versus 6.7% in March. Actual was 6.8%. Excluding food and energy, April CPI was expected to increase 0.5% versus a gain of 1.0% in March. Actual was an increase of 0.6%. On a year-over-year basis, April CPI excluding food and energy was expected to increase 4.2% versus a gain of 5.5% in March. Actual was 4.23% .

Target dropped $47.65 to $167.69 after reporting lower than consensus first quarter earnings. The company also lowered guidance for the second quarter.

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Home Depot fell $5.44 to $295.51 after Raymond James lowered its target price from $350 to $340.

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Walmart fell $2.61 to $128.74 after Raymond James lowered its target price from $165 to $150.

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EquityClock’s Daily Comment

Headline reads “An island reversal pattern on the chart of the US Dollar fund suggests a peak for the currency, thereby alleviating the significant head-wind against risk assets since the year began”. Following is the link:

http://www.equityclock.com/2022/05/17/stock-market-outlook-for-may-18-2022/

Greg Schnell says “I’m watching these areas”.

Following is a link:

I’m Watching These Areas | The Canadian Technician | StockCharts.com

 

Technical Notes for yesterday

CGI Group $GIB.A.TO a TSX 60 stock moved above Cdn$105.50 completing a base building pattern.

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Electronic Arts $EA a NASDAQ 100 stock moved above $129.72 setting an intermediate uptrend.

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Semiconductor equities and related ETFs $SOXX and $SMH led the advance by the technology sector. Nice short term double bottom pattern by Micron $MU a NASDAQ 100 stock above $73.90 setting an uptrend!

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Bristol-Myers $BMY an S&P 100 stock moved above $78.17 to an all-time high extending an intermediate uptrend. The stock has a history of moving higher prior to the annual ASCO conference in early June when the company update its research for various cancer treatments.

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AT&T $T an S&P 100 stock moved above $20.46 extending an intermediate uptrend. Seasonal influences are favourable to July 5th. If a subscriber to EquityClock, see seasonality chart at https://charts.equityclock.com/att-inc-nyset-seasonal-chart

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Walmart $WMT a Dow Jones Industrial stock moved below $131.03 setting an intermediate downtrend. The stock responded to lower than consensus first quarter earnings.

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Koenig Dr. Pepper $KDP a NASDAQ 100 stock moved below $35.75 extending an intermediate downtrend.

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Trader’s Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for May 17th 2022

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Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for May 17th 2022

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Green: Increase from previous day

Red: Decrease from previous day


Sectors

Daily Seasonal/Technical Sector Trends for May 17th 2021

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Green: Increase from previous day

Red: Decrease from previous day

All seasonality ratings are based on performance relative to the S&P 500 Index (except TSX)

 

S&P 500 Momentum Barometers

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The intermediate term Barometer added 9.82 to 32.25 yesterday. It remains Oversold, but has started to trend higher.

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The long term Barometer added 3.01 to 36.07 yesterday. It remains oversold, but has started to trend higher.

 

TSX Momentum Barometers

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The intermediate term Barometer added 2.52 to 28.51 yesterday. It remains Oversold, but has started to trend higher.

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The long term Barometer gained 2.48 to 37.28 yesterday. It remains Oversold, but has started to trend higher.

 

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.




5 Responses to “Tech Talk for Wednesday May 18th 2022”

  1. Paula Says:

    Ron/BC,

    Thanks for the updated XBI charts yesterday. Yes, the channel you have drawn is very clear. You must be older than you sound LOL!

  2. Ron/BC Says:

    Paula N.T.R.

    Well I didn’t come to B.C. in a covered wagon or anything back in 1959 but I’m no spring chicken either. Here is a chart of $COMPQ. See the sharp selloff to 11100 and then the rebound back to 12000 and then another sell off today to 11400. “IF” price can clear 12000 it will most likely run up to 12500-13000. Same thing with the $SPX. Breaking up over 4100 would most likely see price run up to 4400.

    https://stockcharts.com/h-sc/ui?s=%24COMPQ&p=D&yr=2&mn=0&dy=0&id=p27813717911&a=1041803119

    https://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=2&mn=0&dy=0&id=p87872994038&a=1131926615

  3. Paula Says:

    Ron/BC,

    Thanks for the charts and levels of “If…then…” scenarios. Maybe there will be a rally when people stop expecting, hoping, praying…
    Or the shorts blink first and rush to cover.

  4. Ron/bc Says:

    Paula
    Well all I’m going by is the “W” pattern formed after a sell off. Lots of “traders” get short expecting a major sell-off and smart money knows this and start buying forcing the shorts to cover.

  5. Ron/bc Says:

    Paula

    Doesn’t mean that will happen but it often does. Just watch the top of the pattern and if cleared jump on.

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