Tech Talk for Friday July 6th 2018

U.S. equity index futures were higher this morning. S&P 500 futures were up 4 points in pre-opening trade.

Index futures moved higher following release of economic news at 8:30 AM EDT. Consensus for June Non-farm Payrolls was 195,000 versus an upwardly revised 244,000 in May. Actual was 213,000. Consensus for the June U.S. Unemployment Rate was unchanged from May at 3.8%. Actual was an increase to 4.0%. Consensus for June Hourly Earnings was an increase of 0.3% versus a gain of 0.3% in May. Actual was an increase of 0.2%. Consensus for the May U.S. Trade Deficit was $47.0 billion versus $46.2 billion in April. Actual was $43.1 billion.

The Canadian Dollar added 0.08 to U.S. 76.25 cents following release of economic news at 8:30 AM EDT. Consensus for the May Merchandise Trade Deficit was $3.6 billion versus $1.9 billion in April. Actual was $2.77 billion. Consensus for June Employment was a gain of 20,000 versus a decline of 7,500 in May. Actual was a gain of 31,800. Consensus for the June Unemployment Rate was unchanged from May at 5.8%. Actual was an increase to 6.0%.

Biogen gained $39.19 to $338.00 after releasing positive results from a study of its Alzheimer treatment.

Parker Hannifin (PH $157.08) is expected to open lower after KeyBanc Capital lowered its target price to $200 from $225.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/07/05/stock-market-outlook-for-july-6-2018/

Note seasonality charts on Non-Farm Payrolls, U.S.REIT Index, Crude Oil Days of Supply and Gasoline Days of Supply.

Observations

U.S. inflation concerns are escalating.

Markets are responding to trade war fears (in both directions). China is expected to announce countervailing traffics today.

StockTwits Released Yesterday

Agnico-Eagle $AEM, a TSX 60 stock moved above $46.63 U.S. extending an intermediate uptrend.

Technical action by S&P 500 stocks to 10:00: Nil $SPX

Editor's Note: After 10:00 AM EDT, breakouts included CTL, K, MMC, JNJ, PX and KO. Breakdowns included NWS, FTI and IPG.

Johnson & Johnson $JNJ, a Dow Jones Industrial stock moved above $124.85 completing a base building pattern

Editor's Note: Coca Cola $KO, another Dow Jones Industrial stock moved above $44.63 near the close extending an intermediate uptrend.

U.S. Dollar Index and related ETF $UUP are showing short term technical weakness: Breaks below its 20 day moving average and daily Stochastics/ RSI/MACD turning down.

'Tis the season for weakness in the U.S. Dollar Index between now and mid-October! $UUP

Trader's Corner

Daily Seasonal/Technical Equity Trends for July 5th 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Commodities Trends for July 5th 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Sector Trends for July 5th 2018

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer added 5.00 to 57.00 yesterday. It remains intermediate neutral.

TSX Momentum Barometer

The Barometer slipped 1.65 to 64.46 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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