Tech Talk for Wednesday May 23rd 2018

U.S. equity index futures moved lower this morning. S&P 500 futures were down 16 points in pre-opening trade. Futures are responding to concerns that the U.S./North Korean talks will not take place. In addition, trade negotiations with China have become uncertain.

Canadian Imperial Bank of Commerce (CM $116.86 Cdn) is expected to open higher after reporting higher than consensus fiscal second quarter earnings.

Celgene added $0.61 to $77.22 after Bernstein upgraded the stock to Outperform.

Lowe's gained $2.75 to $88.50 after issuing a positive outlook.

Tiffany added $15.26 to $117.50 after issuing positive earnings guidance.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/05/22/stock-market-outlook-for-may-23-2018/

Note seasonality charts on Crude Oil, U.S. Energy sector and the TSX Composite Index

Observation

Higher natural gas prices led the Commodity sector on the upside yesterday.

Scary chart! Short term technicals suggest that the U.S. economy has not reached a credit cycle peak yet, but a peak is on the horizon. Stay tuned

Source: www.haver.com, www.gluskinsheff.com, www.mauldineconomics.com

StockTwits released yesterday @EquityClock

Technical action by S&P 500 stocks to 10:15: Quietly bullish. Intermediate breakouts: $NFX $SYF $ESRX. No breakdowns.

Editor's note: After 10:15 AM EDT, breakouts included KIM, DO, AXP, COL and BEN. Break down: LUV

TSX Financials iShares $XFN.CA moved above intermediate resistance at $38.24

Regional Banking SPDRs $KRE moved above $65.12 to an all-time high extending an intermediate uptrend.

Toronto Dominion Bank $TD.CA, a TSX 60 stock moved above $75.53 to an all-time high extending an intermediate uptrend.

CAE Inc. $CAE.CA moved above $25.13 to an all-time high extending an intermediate uptrend.

Bonavista Energy $BNP.CA, a "gassy" stock moved above $1.74 extending an intermediate uptrend on higher natural gas prices.

American Express $AXP, a Dow Jones Industrial stock moved above $102.96 to an all-time high extending an intermediate uptrend.

Eldorado Gold $ELD.CA $EGO moved above $1.33 Cdn. extending an intermediate uptrend.

Nice pop in natural gas prices today, up $0.09 per MBtu! $UNG $NATGAS. 'Tis the season for strength to mid-June.

Trader's Corner

Daily Seasonal/Technical Equity Trends for May 22nd 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Commodities Trends for May 22nd 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Sector Trends for May 22nd 2018

Green: Increase from previous day

Red: Decrease from previous day

Keith Richards' Blog

Keith talks about gold. See link:

http://www.valuetrend.ca/gold-breaks-1300-a-buying-opportunity/

Editor's Note: Seasonality study shows that likely timing to enter the trade is late July. Stay tuned!

S&P 500 Momentum Barometer

The Barometer slipped 1.20 to 62.20 yesterday. It remains intermediate overbought.

TSX Composite Momentum Barometer

The Barometer eased 0.82 to 71.19 yesterday. It remains 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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