Pre-opening Comments for Thursday July 28th
U.S. equity index futures were lower this morning. S&P 500 futures were down 17 points in pre-opening trade.
U.S. equity index futures moved lower following first release of the second quarter real GDP report. Consensus was an increase of 0.3% versus a drop of 1.6% in the first quarter. Actual was a drop of 0.9%.
Ford gained $0.84 to $14.03 after reporting higher than consensus second quarter revenues and earnings.
![clip_image001[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2022/07/clip_image0011-17.png "clip_image001[1]")
Best Buy dropped $2.75 to $71.74 after lowering guidance below consensus.
![clip_image002[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2022/07/clip_image0021-14.png "clip_image002[1]")
Etsy added $7.65 to $103.15 after reporting higher than consensus second quarter earnings.
![clip_image003[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2022/07/clip_image0031-15.png "clip_image003[1]")
Meta Platforms dropped $5.90 to $163.68 after reporting less than consensus quarterly results.
![clip_image004[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2022/07/clip_image0041-8.png "clip_image004[1]")
EquityClock’s Daily Comment
Headline reads “Consumer loans are surging as this cohort of the economy seeks to bridge the gap between incomes and spending, typically a precursor event to an economic recession”. Following is a link:
http://www.equityclock.com/2022/07/27/stock-market-outlook-for-july-28-2022/
Responses to the FOMC meeting released yesterday
Key markets responded as follows after the release at 2:00 PM EDT
S&P 500 Index rose sharply.
The technology sensitive NASDAQ Composite Index and related ETFs led the advance.
The U.S. Dollar Index and related ETF $UUP moved sharply lower.
Yield on 10 year Treasuries moved lower
Gold and precious metal prices moved higher
Ditto for precious metal equities and related ETFs
Technical Notes for yesterday
EAFA iShares $EFA moved above intermediate resistance at $64.22.
Technology stocks and related ETFs led the advance yesterday. Notable breakout by NASDAQ 100 stocks included Synopsys $SNPS on a move above $342.59, ANSYSS $ANSS on a move above $267.11 and Paychex $PAYX on a move above $124.73 and T Mobile on a move above $138.99
Breakouts by S&P 100 stocks that extended intermediate uptrends included McDonalds $MCD, Mondelez $MDLZ and Union Pacific $UNP
Bank of Montreal $BMO.TO a TSX 60 stock moved above intermediate resistance at $126.95.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for July 27th 2022
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for July 27th 2022
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for July 27th 2021
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)
Link offered by a valued provider
Link offered by Mark Bunting and www.uncommonsenseinvestor.com
Three Mighty Mid-Cap Stocks – Uncommon Sense Investor
Next Meeting:
Canadian Association for Technical Analysis
Next meeting is tonight. Following are details:
Topic: CATA Meeting July 28 with Jermaine McGruder
Time: Jul 28, 2022 08:00 PM Eastern Time (US and Canada)
More information on CATA and its services is available (including a list of upcoming events) at www.canadianata.ca
S&P 500 Momentum Barometers
The intermediate term Barometer added 13.40 to 67.80 yesterday. It changed from Neutral to Overbought on a move above 60.00. Trend remains up.
The long term Barometer added 3.80 to 28.20 yesterday. It remains Oversold. Trend remains up.
TSX Momentum Barometers
The intermediate term Barometer added 7.14 to 43.28 yesterday. It changed from Oversold to Neutral on a move above 40.00. Trend remains up.
The long term Barometer added 2.52 to 31.51 yesterday. It remains Oversold. Trend remains up.
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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July 28th, 2022 at 8:57 am
AAII for the week ending July 27 shows the bulls at 27.7% vs 29.6 previous week…the historical average is 38%…Nov. 10 reading was 48.0%….the bears this week are 40.1% vs 42.2…historical average is 30.5%…April 27 reading was 59.4%….
July 28th, 2022 at 4:15 pm
SP500 – Key resistance level coming at 4180-4200. We are getting close to a positive 20/50dayMA cross-over. Cracking 4200 and staying above would be very positive development. Overall most of the selling peaked a month ago and has been exhausted. There is a lot of cash waiting for a re-test of the lows say in September which may or may not happen. Everyone wants to wait to buy cheap without contemplating the equal risk of the market running higher. At this point I would rely more on fundamental analysis and invest with a longer time frame while keeping a little powder dry.
July 28th, 2022 at 7:06 pm
End of the month buying is standard with the stock market as cash automatically flows into equities. The first week of August will be more telling of the trend.