Tech Talk for Tuesday April 3rd 2018

U.S. equity index futures were higher this morning. S&P 500 futures were up 18 points in pre-opening trade.

General Electric (GE $13.16) is expected to open lower after Stifel Nicolaus lowered its target price to $13 from $15.

MMM (MMM $212.62) is expected to open lower after Stifel Nicolaus lowered its target price to $225 from $251.

Constellation Brands slipped $1.83 to $226.33 after Stifel Nicolaus lowered its ratings on the stock to Hold from Buy.

Schlumberger added $0.82 to $64.30 after SunTrust upgraded the stock to Buy from Hold.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/03/29/stock-market-outlook-for-april-3-2018/

Note seasonality charts on S&P 500 Index, Energy sector, Materials sector, Constellation Brands, Canada GDP, Natural Gas Storage and Natural Gas Futures

Observations

Trade war fears re-surfaced over the weekend after China announced tariffs on a wide variety of U.S. products. Gains recorded last Thursday by North American equity indices quickly evaporated. The VIX Index spiked higher.

StockTwits released yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Quiet. Non intermediate breakouts. Breakdown: $ESRX

Editor's Note: U.S. equity markets quickly deteriorated after 10:00 AM EDT, particularly when the S&P 500 Index dropped below its 200 day moving average. Fifteen stocks broke support. None broke resistance.

Technical selling in U.S. equity markets partially triggered by a break by the S&P 500 Index below its 200 day moving average at 2,590

Blackberry $BB.CA, a TSX 60 stock moved below $14.03 Cdn setting intermediate downtrend.

Caterpillar $CAT, a Dow Jones Industrial stock moved below $142.85 completing a double top pattern. Chinese connection?

Nike $NKE, a Dow Jones Industrial stock moved below $63.89 completing a modified Head & Shoulders pattern. Chinese connection?

Homebuilders SPDRs $XHB moved below $39.46 extending an intermediate downtrend. Individual stock breaks in the sector: $LEN $PPG

Editor's Note: Home construction ETF, ITB also broke intermediate support.

United Technologies $UTX, a Dow Jones Industrial stock moved below $121.53 completing a double top pattern.

Financial SPDRs $XLF moved below $26.66 completing a double top pattern.

Health Care SPDRs $XLV moved below $79.28 completing a double top pattern.

Money Center Bank ETF $KBE moved below $46.48 completing a double top pattern.

Israel iShares $EIS moved below $48.71 extending an intermediate downtrend.

AMEX Biotech ETF $FBT moved below $125.41 completing a double top pattern.

Editor's Note: Another actively traded ETF, BBH also completed a similar pattern.

U.S. Telecom iShares $IYZ moved below $26.36 extending an intermediate downtrend.

Sherwin Williams $SHW, another home building oriented equity moved below $380.67 completing a double top pattern.

Trader's Corner

Daily Seasonal/Technical Equity Trends for April 2nd 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Commodities Trends for April 2nd 2018

Green: Increase from previous day

Red: Decrease from previous day

* Excludes adjustment from rollover of futures contracts

Daily Seasonal/Technical Sector Trends for April 2nd 2018

Green: Increase from previous day

Red: Decrease from previous day

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S&P 500 Momentum Barometer

The Barometer plunged 12.40 to 19.20 yesterday. It has returned to deeply intermediate oversold, but has yet to show signs of bottoming.

TSX Momentum Barometer

The Barometer dropped 4.10 to 37.30 yesterday. It has returned to slightly intermediate oversold.

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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