Tech Talk for Wednesday May 30th 2018

U.S. equity index futures were higher this morning. S&P 500 futures were up 10 points in pre-opening trade.

Index futures moved slightly lower following release of economic news. Consensus for May ADP Employment reported at 8:15 AM EDT was a drop to 186,000 from 204,000 in April. Actual was 178,000. Consensus for second estimate of annualized first quarter real GDP reported at 8:30 AM EDT was 2.2% versus the first estimate of 2.3%. Actual was 2.2%.

Salesforce.com added $5.75 to $132.63 after reporting higher than consensus quarterly earnings. Target price on the stock was raised by JP Morgan, Raymond James, Stifel Nicolaus, Monness and SunTrust

Bank of Montreal (BMO $99.67 Cdn.) is expected to open higher after reporting higher than consensus fiscal second quarter earnings. The Bank also raised its dividend.

Dick's Sporting Goods gained $4.54 to $35.02 after reporting higher than consensus first quarter earnings.

Analog Devices gained $1.21 to $95.60 after reporting higher than consensus fiscal second quarter sales and earnings.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/05/29/stock-market-outlook-for-may-30-2018/

Note seasonality charts on the U.S. Financial sector and the Case/Shiller 20 City Home Price Index.

Observations

Greek and Italian equity markets and their related ETFs led world equity markets on the downside yesterday.

Weakness in the Euro also contributed to weakness in European equity markets and their related ETFs.

Yield on 10 year U.S. Treasuries dropped 16.3 basis points. Bond and REIT prices responded accordingly.

Auto stocks and their related ETF led the Industrial sector on the downside.

StockTwits Released Yesterday @EquityClock

Investors hesitant to take on leverage in 2018. Margin debt up 1.5% YTD, well below 6.2% average increase. $MACRO STUDY

U.S. Home prices up 1.0% (NSA) in March, firmly above 0.3% average increase for the month.

Johnson & Johnson $JNJ, a Dow Jones Industrial stock moved below $120.48 and $120.39 extending an intermediate downtrend.

Starbucks takes time off. Coffee ETN $JJOFF drops below $13.64 extending an intermediate downtrend.

Technical action by S&P 500 stocks to 10:00: Bearish. Intermediate breakdowns: $IPG $PM $MTB $HSIC $JNJ. Breakout: $INTC

Intel $iNTC, a Dow Jones Industrial stock moved above $55.47 extending an intermediate uptrend.

Agnico-Eagle Mines $AEM.CA $AEM, a TSX 60 stock moved above Cdn. $57.97 extending an intermediate uptrend.

Another 17 S&P 500 stocks broke support after 10:00 AM. Notable were Financials: $AJG $BRK.B $FITB $GS $CBOE $GS $CBOE $CFG $MMC $UNM.

Goldman Sachs $GS, a Dow Jones Industrial stock moved below $227.40 extending an intermediate downtrend.

Berkshire Hathaway $BRK.B, a Dow Jones Industrial stock moved below $189.80 and $189.30 completing a double top pattern.

Copper sensitive Chile iShares $ECH moved below $50.54 extending an intermediate downtrend.

German iShares $EWG moved below $31.20 and $31.27 extending an intermediate downtrend.

More S&P Financials break intermediate support: $IVZ $MS $PRU $STT $TMK $USB

VIX Index $VIX spikes 33% on growing international/political uncertainties. 'Tis the season from May to mid-October for unpleasant surprises.

Long term Treasury ETF $TLT moved above $122.09 setting intermediate uptrend.

JP Morgan $JPM, a Dow Jones Industrial stock moved below $105.18 completing a Head & Shoulders pattern.

European equity markets and related ETFs were weaker than North American equity markets $IEV

Trader's Corner

Daily Seasonal/Technical Equity Trends for May 29th 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Commodities Trends for May 29th 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Sector Trends for May 29th 2018

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer dropped 9.20 to 52.60 yesterday. It dropped from intermediate overbought to neutral and shows signs of rolling over.

TSX Momentum Barometer

The Barometer dropped 5.51 to 65.98 yesterday. It remains intermediate overbought and showing early signs of trending lower.

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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