Tech Talk for Thursday February 27th 2020

U.S. equity index futures were lower this morning. S&P 500 futures were down 39 points in pre-opening trade. Traders are responding to news of a spread in the coronavirus.

Index futures were virtually unchanged following release of economic news at 8:30 AM EST. Consensus for Weekly Jobless Claims was 212,000 versus 211,000 last week. Actual was 219,000. Consensus for January Durable Goods Orders was a drop of 1.5% versus a revised gain of 2.9% in December. Actual was down 0.2%. Excluding transportation orders, consensus for January Durable Goods Orders was an increase of 0.2% versus a decline of 0.1% in December. Actual was an increase of 0.9%. Consensus for second estimate of fourth quarter annualized GDP growth was 2.1%. Actual was 2.1%.

Toronto Dominion Bank (TD $73.10) is expected to open higher after reporting higher than consensus fiscal first quarter earnings. The Bank also raised its dividend.

Best Buy slipped $0.35 to $81.83 despite reporting higher than consensus fourth quarter earnings.

Gilead gained $4.95 to $79.65 on news that the company is working on a vaccine to counteract the coronavirus.

Microsoft dropped $7.09 to $163.08 after lower guidance due to the coronavirus.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2020/02/26/stock-market-outlook-for-february-27-2020/

Note seasonality chart on New Home Sales.

StockTwits released yesterday @EquityClock

Lowe’s $LOW, an S&P 100 stock moved below $116.09 and $113.10 after releasing lower than consensus first quarter guidance.

Expedia $EXPE, a NASDAQ 100 stock moved below $106.28 forming an intermediate topping pattern.

Imperial Oil $IMO.CA, a TSX 60 stock moved below $30.55 extending an intermediate downtrend.

Check Point $CHKP, a NASDAQ 100 stock moved below $105.13 extending an intermediate downtrend.

Housing market remains red hot: New Home Sales up 18.8% (NSA) in January, well above the 6.3% increase that has been average for the first month of the year going back two decades. $MACRO $STUDY $ITB $XHB

Comcast $CMCSA , an S&P 100 stock moved below $42.62 extending an intermediate downtrend.

Aerospace and Defense ETF $PPA moved below $67.36 extending an intermediate downtrend.

TSX Energy iShares $XEG.CA moved below $7.71 extending an intermediate downtrend

Sun Life $SLF.CA, a TSX 60 stock moved below $61.80 completing an intermediate topping pattern

Trader's Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for February 26th 2020

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for February 26th 2020

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for February 26th 2020

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer dropped another 2.40 to 21.24 yesterday. It remains intermediate oversold, but has yet to show signs of bottoming.

TSX Momentum Barometer

The Barometer slipped another 1.38 to 37.16 yesterday. It remains intermediate oversold, but has yet to show signs of bottoming.

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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