Tech Talk for Monday August 26th 2024

U.S. equity index futures were higher this morning. S&P 500 futures were up 6 points at 8:35 AM EDT.

S&P 500 futures slipped 1 point following release of July Durable Goods Orders at 8:30 AM EDT. Consensus was a 4.0% increase versus an upwardly revised 6.9% drop in June. Actual was a 9.9% increase. Excluding transportation orders, consensus was unchanged versus a downwardly revised -0.1% decline in June. Actual was a 0.2% decline

WTI Crude Oil added $2.03 to $76.86 per barrel on increasing Middle East tensions.

Nvidia added $1.11 to $173.52 in anticipation of second quarter results to be released on Wednesday.

Regeneron added $11.46 to $1,199.12 after receiving European approval for Ordspono.

EquityClock's stock market outlook for Monday

The abnormal rise in New Home Sales for July hints that the housing market has entered a new phase, one where looser conditions entices activity. See:

https://equityclock.com/2024/08/24/stock-market-outlook-for-august-26-2024/

The Bottom Line

Responses to Federal Reserve Chairman Powell's Jackson Hole comments triggered significant buying in North American equity markets on Friday. According to Powell, "The time has come to adjust our restrictive monetary policy". His comments implied that the FOMC likely will start to lower its Fed Fund Rate at its next meeting on September 18th. Key equity and sector indices broke to all-time highs on Friday following Powell's comments including Financial SPDRs, Utility SPDRs, Industrial SPDRs and Equal Weight S&P 500 ETF. Also, Healthcare SPDRs and Utilities SPDRs extended their move to all-time highs. Canadian indices quickly followed: TSX Composite Index, S&P/TSE 60 Index, TSX Financials iShares broke to all-time highs.

Currencies moved significantly following Powell's comments. The U.S. Dollar dropped to an eight month low. The Canadian Dollar broke above US73.58 cents reached on two previous occasions setting an intermediate uptrend. Related to the change, prices of U.S. securities valued in Canadian Dollars dropped accordingly.

Economic News This Week

Source: www.Investing.com

July Durable Goods Orders released at 8:30 AM EDT on Monday are expected to increase 4.0% versus a drop of 6.6% in June. Excluding transportation orders, July Durable Goods Orders are expected to be unchanged versus a gain of 0.5% in June.

Next estimate of annualized second quarter real GDP released at 8:30 AM EDT on Thursday is expected to show growth at 2.8% versus a gain of 1.4% in the first quarter.

July PCE Price Index released at 8:30 AM EDT on Friday is expected to increase 0.2% versus a gain of 0.1% in June.

July Personal Income released at 8:30 AM EDT on Friday is expected to increase 0.2% versus a gain of 0.2% in June. July Personal Spending is expected to increase 0.5% versus a gain of 0.3% in June.

August Michigan Consumer Sentiment released at 10:00 AM EDT on Friday is expected to increase to 67.8 from 66.4 in July.

Selected Earnings News This Week

Source: www.Investing.com

Focuses are on reports by Nvidia in the U.S. and banks in Canada

Trader's Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for August 23rd 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 August 23rd 2024

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for August 23rd 2024

Green: Increase from previous day

Red: Decrease from previous day

Changes Last Week

Links offered by valued providers

Michael Campbell's Money Talks for August 24th

Michael Campbell's MoneyTalks - Complete Show (mikesmoneytalks.ca)

2 Best Healthcare Stocks for August 2024: David Keller

2 Best Healthcare Stocks for August 2024 - YouTube

Powell Pivots: "Time to Adjust": Schwab

Powell Pivots: "Time to Adjust" - YouTube

BoC widely expected to cut rates in September: BNN

BoC widely expected to cut rates in September - YouTube

Markets in a potentially dangerous time: Mark Leibovit

Markets in a Potentially Dangerous Time - HoweStreet

TLT Turns the Corner and Starts to Lead: Arthur Hill

TLT Turns the Corner and Starts to Lead | Art’s Charts | StockCharts.com

Fed Promised Cuts Will Not Take You to the Promised Land: Bob Hoye

Fed Promised Cuts Will Not Take You to the Promised Land - HoweStreet

Markets in a Potentially Dangerous Time: Mark Lebovit

Markets in a Potentially Dangerous Time - HoweStreet

In Reality, We're Already in Recession: Danielle Park

In Reality, We're Already in Recession - HoweStreet

Trading Desk Notes for August 24, 2024:Victor Adair

Trading Desk Notes for August 24, 2024 - HoweStreet

Technical Scoop from David Chapman and www.EnrichedInvesting.com for August 26th

https://enrichedinvesting.com/library/

S&P 500 Momentum Barometers

The intermediate term Barometer added 7.00 on Friday and gained 10.80 last week to 79.80. It remains Overbought. Daily trend remains up.

The long term Barometer added 2.00 on Friday and gained 3.80 last week to 77.60. It remains Overbought. Daily trend remains up.

TSX Momentum Barometers

The intermediate Barometer added 7.95 on Friday and gained 4.43 last week to 72.57. It remains Overbought. Daily uptrend resumed on Friday.

The long term Barometer added 0.88 on Friday and was unchanged last week at 75.66. 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