Tech Talk for Friday October 26th 2018

U.S. equity index futures were lower this morning. S&P 500 futures were down 24 points in pre-opening trade.

Index futures were recovered following release of the first estimate of third quarter real GDP. Consensus is growth at a 3.3% rate versus growth at a 4.2% rate in the second quarter. Actual was 3.5%.

Amazon plunged $147.17 to $1635.00 after reporting lower than consensus third quarter revenues.

Alphabet fell $56.79 to $1046.80 after lowering guidance for the fourth quarter.

Intel added $0.57 to $44.88 reporting higher than consensus third quarter results.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/10/25/stock-market-outlook-for-october-26-2018/

Note seasonality charts on Durable Goods Orders and the Forest Product Industry.

Observation

Yesterday, U.S. equity indices recovered most of their losses recorded on Wednesday. However, after the close, two heavy weight stocks in these indices (Amazon and Google) reported disappointing results implying a significant drop at the opening today. Caveat emptor!

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:15: Bearish. No breakouts. Breakdowns: $HSY $LLY $MRK $SYK $UNH $ZBH $LMT $LUV $UNP $AMD $COO.

Editor's Note: After 10:15 AM EDT, breakdowns included SYF,FL, FTI, NEM and RSG. No breakouts.

Healthcare stocks dominated the breakdown list: $LLY $MRK $UNH $ZBH.

Goldcorp $G.CA $GG, a TSX 60 stock moved below $12.74 and $9.75 U.S. extending an intermediate downtrend.

Kinross Gold $KGC $K.CA, a TSX 60 stock moved below $2.67 U.S. extending an intermediate downtrend

AltaGas $ALA.CA moved above $21.58 completing a double bottom pattern.

Maple Leaf Foods $MFI.CA moved below $30.38 and $30.24 setting an intermediate downtrend

Celestica $CLS.CA moved below $12.27 and $12.58 to a 2 year low extending an intermediate downtrend.

Another Cdn. gold producer breakdown! Detour Gold $DGC.CA moved below $9.91 extending an intermediate downtrend.

US Durable Goods Orders up 0.9% (NSA), weaker than the 6.5% increase that is average for the month. $MACRO #Economy #Manufacturing

Trader's Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for October 25th 2018

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for October 25th 2018

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for October 25th 2018

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer added 3.00 to 16.80 yesterday. It remains intermediate oversold.

TSX Momentum Barometer

The Barometer slipped another 0.90 to a new intermediate cycle low at 15.77. It remains intermediate oversold.

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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