Tech Talk for Thursday March 22nd 2018

U.S. equity index futures were lower this morning. S&P 500 futures were down 19 points in pre-opening trade. Investors are responding to reports that the U.S. government will impose tariffs against Chinese goods valued at $50 billion.

U.S. equity index futures were virtually unchanged following release of the Weekly Jobless Claims report at 8:30 AM EDT. Consensus was 225,000 versus 226,000 last week. Actual was 229,000.

The Bank of England maintained its overnight lending rate at 0.5%.

Cenovus (CVE $11.52 Cdn) is expected to open lower after announcing plans to reduce production.

Conagra gained $0.66 to $36.00 after reporting higher than consensus fiscal third quarter results. The company also raised its guidance.

Facebook dropped another $3.70 to $165.69 after Stifel Nicolaus lowered its target price to $168 from $195.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/03/21/stock-market-outlook-for-march-22-2018/

Note seasonality charts on Crude Oil days of Supply, Gasoline days of Supply, Crude Oil, U.S. Energy sector, TSX Energy sector and Existing Home Sales.

Market Responses to FOMC news after 2:00 PM EDT

U.S. equity indices were volatile but mixed by the close.

Yield on 10 year Treasuries also were volatile, but mixed by the close.

The U.S. Dollar Index and its related ETF dropped sharply.

Weakness in the U.S. Dollar Index prompted strength in the CRB Index and its related ETF

Notably stronger among commodities were gold, silver and crude oil. Related equities responded accordingly. Also, gasoline broke to a 2.5 year high.

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Bearish. No intermediate breakouts. Breakdowns: $IPG $CPB $KMB $K $MDLZ $MO $CHTR $VZ

Editor's Note: After 10:00 AM EDT, breakouts included ROP, FE, DO, MPC, XEL, HRS. Breakdowns included CLX and NCLH

Consumer Staples SPDRs $XLP moved below $52.37 extending an intermediate downtrend. Breakdowns included $CPB $K $KMB $MDLZ $MO $PG

Procter & Gamble $PG, a Dow Jones Industrial stock moved below $77.90 extending an intermediate downtrend.

Verizon $VZ, a Dow Jones Industrial stock moved below $47.51 extending an intermediate downtrend.

Encouraging technicals in Cdn. energy stocks continue. $XEG.CA. Breakout by Enerplus $ERF.CA above $15.05.

'Tis the season for strength in the Canadian energy sector to mid-June! $XEG.CA

Encouraging technical action by oil services sector $OIH! Nice breakout by $RIG above $10.05.

'Tis the season for strength in the oil services sector to early May! $OIH

Existing Home Sales

More Canadian energy stock/ETF breakouts: $XEG.CA $ECA $OBE.CA

Another oil services stock breakout! Diamond Offshore Drilling $DO moved above $15.89.

Days of Supply of $OIL hinting to an earlier than average peak as demand for products remains robust $USO $XLE $XOP

Existing Home Sales up 1.9% in February, well short of the 5.3% average gain for this time of year. #Economy #Housing $MACRO

Oil Services ETF $OIH moved above $25.37 completing a double bottom pattern.

First Majestic Silver $AG moved above US $6.14 completing a double bottom pattern. Other silver stocks also strong.

Imperial Oil $IMO.CA, a Dow Jones Industrial stock moved above $35.47 completing a double bottom pattern.

Trader's Corner

Daily Seasonal/Technical Equity Trends for March 21st 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Commodities Trends for March 21st 2018

Green: Increase from previous day

Red: Decrease from previous day

* Excludes adjustment from rollover of futures contracts

Daily Seasonal/Technical Sector Trends for March 21st 2018

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer added 0.51 to 43.80 yesterday. It remains intermediate neutral.

TSX Momentum Barometer

The Barometer added another 6.15 to 47.54 yesterday. It remains intermediate neutral.

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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