Tech Talk for Wednesday April 25th 2018

U.S. equity index futures were lower this morning. S&P 500 futures were down 7 points in pre-opening trade.

First quarter reports continue to pour in. Reports released since yesterday's close included Amgen, Boeing, Boston Scientific, Comcast, GlaxoSmithKline, Goodyear, Hess, Northrop Grumman, Owens Corning, Texas Instruments, Twitter, Viacom and Wynn Resorts.

Boeing gained $8.63 to $337.20 after reporting higher than consensus first quarter results. The company also raised guidance.

Alphabet added $5.80 to $1028.44 after Stifel Nicolaus upgraded the stock to Buy.

Verizon improved $0.33 to $50.00 after SunTrust upgraded the stock to Buy from Hold.

Hasbro (HAS $86.26) is expected to open higher after CFRA upgraded the stock to Strong Buy.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/04/24/stock-market-outlook-for-april-25-2018/

Note seasonality charts on New Home Sales, Case/Shiller 20 City Home Price Index, Consumer Staples sector and Health Care sector.

Observation

Important reversal by U.S. equity markets yesterday! U.S. equity indices and economic sensitive sectors opened higher on stronger than consensus sales and earnings reports (e.g. Alphabet, Caterpillar). However, by 10:00 AM EDT, sellers on news appeared. Weakness triggered short term technical sell signals (e.g. moves below20 day moving average, falling Stochastics and RSI from overbought levels). See "Trader's Corner" below for background.

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:15: Slightly bearish. Intermediate breakouts: $MET $FLR. Breakdowns: $TRV $MAS $MMM $SHW.

Travelers $TRV, a Dow Jones Industrial stock moved below $132.07 and $132.09 completing a double top pattern.

MMM $MMM, a Dow Jones Industrial stock moved below $209.47 extending an intermediate downtrend.

Enbridge $ENB.CA, a TSX 60 stock moved below $38.02 on pipeline construction delays extending an intermediate downtrend.

U.S. Home Prices up 0.7% (NSA) in February, positively diverging from the 0.2% decline that is average for month #Housing #Economy $MACRO

Canadian "gassy" stocks move higher on natural gas price strength. E.g. $ERF.CA $PEY.CA

Power Corp. $POW.CA, a TSX 60 stock moved above $29.90 completing a modified reverse Head & Shoulders pattern.

Technical action by S&P 500 stocks to 1:00: Very bearish. Industrials notably weaker. Breakdowns: $AME $DE $ITW $JCI $ROP $ARNC $FTV

Editor's Note: Additional industrial stock breaking support after 1:00 PM EDT included ETN, NOC, PH, DOV, AAL, RSG and PWR.

Goldman Sachs $GS, a Dow Jones Industrial stocks moved below $243.77 completing a modified Head & Shoulders pattern.

Homebuilder SPDRs $XHB moved below $39.08 extending an intermediate downtrend.

Trader's Corner

Daily Seasonal/Technical Equity Trends for April 24th 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Commodities Trends for April 24th 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 24th 2018

Green: Increase from previous day

Red: Decrease from previous day

Keith Richards Blog

Keith says, "Don't be the dip buying the dip".

Following is a link:

http://www.valuetrend.ca/dont-be-the-dip-buying-the-dip/

Editor's Note: Interesting article well worth reading! Tech Talk agrees with the assessment for another reason. Seasonal influences historically have peaked at this time of year, particularly during U.S. mid-term election years.

S&P 500 Momentum Barometer

The Barometer dropped another 7.40 to 42.00 yesterday. It remains intermediate neutral.

TSX Momentum Barometer

The Barometer slipped 4.37 to 58.02 yesterday. It returned to intermediate neutral from intermediate overbought.

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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