Tech Talk for Monday August 28th 2023

U.S. equity index futures were higher this morning. S&P 500 futures were up 18 points at 8:30 AM EDT.

Horizon Therapeutics added $5.38 to $112.05 after the Federal Trade Commission halted its challenge of Amgen to take over the company.

MMM gained $5.05 to 104.00 on news that the company is nearing a settlement to pay $5.5 billion to resolve a claim on faulty earplugs sold to the U.S. military.

Macom Technology added $1.51 to 81.55 after Benchmark upgraded the stock from Hold to Buy.

EquityClock's Daily Comment

Headline reads "Breakout from trend channel resistance on the US Dollar Index threatens to impose a headwind against stocks moving forward".

https://equityclock.com/2023/08/26/stock-market-outlook-for-august-28-2023/

The Bottom Line

High and rising interest rates on long term North American Treasuries have "put a lid" on North American equity markets. Comments by Federal Reserve Chairman Powell on Friday echoed comments by the Bank of Canada that central banks in North America are "prepared to raise rates further". The stage is set for "choppy" equity markets between now and October.

Economic News This Week

Source: www.Investing.com

Focus this week is on the July Core PCE Price Index, the Federal Reserve's favoured measure on inflation. The report is released on Thursday morning.

U.S. second quarter annualized real GDP released at 8:30 AM EDT on Wednesday is expected to increase 2.4% versus a gain of 2.0% in the first quarter.

July Core PCE Price Index is released at 8:30 AM EDT on Thursday is expected to increase 0.2% versus 0.2% in June. On a year-over-year basis, July Index is expected to increase 4.2% versus 4.1% in June.

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

August Chicago Purchasing Managers Index is released at 9:45 AM EDT on Thursday.

August Employment Report is released at 8:30 AM EDT on Friday. Non-farm Payrolls are expected to increase 170,000 versus a gain of 187,000 in July. August Unemployment Rate is expected to remain unchanged from July at 3.5%. August Hourly Earnings are expected to increase 0.3% versus a gain of0.4% in August. On a year-over-year basis, August Hourly Earnings are expected to increase 4.4% versus a gain of 4.4% in July.

Canada's June GDP released at 8:30 AM EDT on Friday is expected to decline 0.2% versus a gain of 0.3% in May.

July U.S. Construction Spending released at 10:00 AM EDT on Friday is expected to drop 0.1% versus a gain of 0.5% in June.

August ISM Manufacturing PMI released at 10:00 AM EDT on Friday is expected to improve to 46.6 from 46.4 in July.

Selected Earnings News This Week

Source: www.Investing.com

Focus this week is on quarterly reports released by Canada's major banks

Trader's Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for August 25th 2023

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 25th 2023

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for August 25rd 2023

Green: Increase from previous day

Red: Decrease from previous day

Technical Scores

Calculated as follows:

Intermediate Uptrend based on at least 20 trading days: Score 2

          (Higher highs and higher lows)

Intermediate Neutral trend: Score 0

          (Not up or down)

Intermediate Downtrend: Score -2

          (Lower highs and lower lows)

Outperformance relative to the S&P 500 Index: Score: 2

Neutral Performance relative to the S&P 500 Index: 0

Underperformance relative to the S&P 500 Index: Score -2

Above 20 day moving average: Score 1

At 20 day moving average: Score: 0

Below 20 day moving average: -1

Up trending momentum indicators (Daily Stochastics, RSI and MACD): 1

Mixed momentum indicators: 0

Down trending momentum indicators: -1

Technical scores range from -6 to +6. Technical buy signals based on the above guidelines start when a security advances to at least 0.0, but preferably 2.0 or higher. Technical sell/short signals start when a security descends to 0, but preferably -2.0 or lower.

Long positions require maintaining a technical score of -2.0 or higher. Conversely, a short position requires maintaining a technical score of +2.0 or lower

Changes Last Week

Technical Notes for Friday

Intuit $INTU a NASDAQ 100 stock moved above $514.14 extending an intermediate uptrend.

Emerson $EMR an S&P 100 stock moved above $98.01 to a two year high extending an intermediate uptrend.

Links offered by valued providers

Michael Campbell's Money Talks for August 26th

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

Wyckoff Case Study Pare 2 w/ Special Guest Roman Bogomazo | Power Charting (08.25.23)

https://www.youtube.com/watch?v=8mzvqZDAjp8

How the Market Is Shaping Up After 3 Weeks Down | Moxie Indicator Minutes (08.25.23)

https://www.youtube.com/watch?v=m8Aa0RmBB10

Watch These Four Horrible Charts in the Dow Jones Industrials Index

Watch These Four Horrible Charts in the Dow Jones Industrials Index | RRG Charts | StockCharts.com

Swenlin Trading Oscillators Trying To Turn Up

Swenlin Trading Oscillators Trying To Turn Up | DecisionPoint | StockCharts.com

Can Small Caps Lead the Market Higher? A Video Analysis

Can Small Caps Lead the Market Higher? A Video Analysis | Mish’s Market Minute | StockCharts.com

M2 Continues to Fall, Making Stocks Overvalued

M2 Continues to Fall, Making Stocks Overvalued | Top Advisors Corner | StockCharts.com

The Five Ratios ALL Investors Should Follow | The Final Bar (08.25.23)

The Five Ratios ALL Investors Should Follow | The Final Bar (08.25.23) - YouTube

August 25, 2023 | Has the Fed Eaten Yellen's Magic Mushrooms? Bob Hoye

Has the Fed Eaten Yellen's Magic Mushrooms? - HoweStreet

August 24, 2023 | BRICS vs The US Dollar Trading World

BRICS vs The US Dollar Trading World - HoweStreet

August 26, 2023 | Trading Desk Notes For August 26, 2023 Victor Adair

Trading Desk Notes For August 26, 2023 - HoweStreet

GDP Boom a Mirage As Barbenheimer/Swift/Beyonce Effect Fades.

GDP Boom a Mirage As Barbenheimer/Swift/Beyonce Effect Fades. – Uncommon Sense Investor

Technical Scoop from David Chapman and www.EnrichedInvesting.com

https://enrichedinvesting.com/wp-content/uploads/2023/08/Hawkish-chair-mixed-market-Everything-Bubble-ticking-bombs-golden-signs-energy-upside-.pdf

S&P 500 Momentum Barometers

The intermediate term Barometer added 3.00 on Friday, but slipped 1.20 last week. It remains Oversold. Daily trend remains down.

The long term Barometer added 1.60 on Friday, but slipped 2.20 last week. It remains Neutral.. Daily trend remains down.

TSX Momentum Barometers

The intermediate term Barometer added 5.29 on Friday and gained 3.53 last week to 40.97. It returned to Neutral on a recovery above 40.00.

The long term Barometer added 1.32 on Friday, but slipped 0.88 last week to 47.58. It remains Neutral.

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