Tech Talk for Thursday June 6th 2024

U.S. equity index futures were lower this morning. S&P 500 futures were down 3 points at 8:35 AM EDT.

European Central Bank updated its Overnight Lending Rate for major banks at 8:15 AM EDT Consensus was a reduction from 4.50% to 4.25%. Actual was a reduction to 4.25%.

April U.S. Trade Report was announced at 8:30 AM EDT. Consensus was a deficit of $76.5 billion versus a deficit of $69.40 billion in March. Actual was a deficit of $74.6 billion.

Canada's major banks have lowered their prime lending rates by 0.25%, matching the drop in the Bank of Canada's lending rate to 4.75% announced yesterday.

Lululemon advanced $30.73 to $339.00 after reporting higher than consensus first quarter revenues and earnings. The company also announced a $billion share buyback program.

Five Below dropped $23.00 to $109.79 after the company cut its full year sales forecast.

Smartsheet gained $4.54 to $42.32 after reporting higher than consensus first quarter revenues and earnings.

EquityClock's Stock Market Outlook for June 6th 2024

The Computer Hardware industry is breaking out of a prolonged trading range, re-adding breadth to the growth/technology sector.

See: https://equityclock.com/2024/06/05/stock-market-outlook-for-june-6-2024/

Technical Notes

S&P 500 Index and its related ETF $SPY advanced to at an all-time daily and closing high. Strength was led by the technology sector.

NASDAQ 100 Index and its related ETF $QQQ advanced to an all-time daily and closing high.

Strength was led by the technology sector.

Europe iShares $IEV moved above $58.09 to an all-time high extending an intermediate uptrend.

Biogen $BIIB a NASDAQ 100 stock moved above $236.90 completing a reverse Head & Shoulders pattern.

Honeywell $HON a Dow Jones Industrial Average stock moved above $208.35 extending an intermediate uptrend.

US Bancorp $USB an S&P 100 stock moved below $38.79 and $38.34 completing a Head & Shoulders pattern.

Vale $VALE one of the world's largest base metals producers and largest Brazilian stock listed in New York moved below $11.52 setting an intermediate downtrend. Brazil iShares $EWZ also broke support extending an intermediate downtrend.

BCE $BCE.TO a TSX 60 stock moved above Cdn$47.20 completing a reverse Head & Shoulders pattern

Trader's Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for June 5th 2024

Green: Increase from previous day

Red: Decrease from previous day

Source for all positive seasonality ratings: www.EquityClock.com

Commodities

Daily Seasonal/Technical Commodities Trends for June 5th 2024

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for June 5th 2024

Green: Increase from previous day

Red: Decrease from previous day

Links offered by valued providers

Start of a Market Correction or a Summer Rally? Mish Schneider

Start of a Market Correction or a Summer Rally? - YouTube

The Wisdom of Price & Volume: Carter Worth and Ed Coyne

The Wisdom of Price & Volume (sprott.com)

Live Trade Ideas & Market Analysis: $SPX, $TLT, $NVDA: Guy Adami and Liz Young

Live Trade Ideas & Market Analysis: $SPX, $TLT, $NVDA - YouTube

Chart of the Day

Nice breakout by Biogen! See chart above. The stock and the biotech sector have a history of recording exceptional gains on a real and relative basis (relative to the S&P 500 Index) between May 10 and September 15th. History is repeating this year. Ways to trade in the sector include IBB, BBH, FBT and XBI.

EquityClock Seasonal Chart Analysis

Analysis of the VanEck Vectors Biotech ETF (NASD:BBH) seasonal charts above shows that a Buy Date of May 10 and a Sell Date of September 15 has resulted in a geometric average return of 5.56% above the benchmark rate of the S&P 500 Total Return Index over the past 20 years. This seasonal timeframe has shown positive results compared to the benchmark in 16 of those periods. This is a very good rate of success and the return strongly outperforms the relative buy-and-hold performance of the stock over the past 20 years by an average of 3.24% per year.

S&P 500 Momentum Barometers

The intermediate term Barometer added 1.80 to 49.00. It remains Neutral.

The long term Barometer slipped 0.20 to 70.80. It remains Overbought.

TSX Momentum Barometers

The intermediate term Barometer advanced 8.97 to 55.14. It remains Neutral.

The long term Barometer added 2.69 to 69.96. It remains Overbought.

Disclaimer: Seasonality ratings 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