Tech Talk for Tuesday January 21st 2020

U.S. equity index futures were lower this morning. S&P 500 futures were down 10 points in pre-opening trade. Index futures responded to fears that a coronavirus in China will spread.

JB Hunt Transport (JBHT $114.68) is expected to open higher after Raymond James raised its rating from Market Perform to Outperform.

EOG Resources (EOG $85.25) is expected to open higher after Sun Trust RH raised its target price from $80 to $110.

Microsoft (MSFT $166.67) is expected to open higher after Stifel Nicolaus raised its target price from $160 to $175.

Halliburton (HAL $23.96) is expected to open higher after reporting higher than consensus fourth quarter revenues and earnings.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2020/01/18/stock-market-outlook-for-january-21-2020/

Note seasonality charts on U.S. Industrial Production, U.S. Energy Sector and U.S. Railroads

StockTwits released yesterday @EquityClock

Canadian National Railway $CNR.CA $CNI, a TSX 60 stock moved above $126.26 Cdn. to an all-time extending an intermediate uptrend.

Trader's Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for January 20th 2019

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for January 20th 2019

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for January 20th 2019

Green: Increase from previous day

Red: Decrease from previous day

Technical Scoop

Thank you to David Chapman and www.EnrichedInvesting.com for this weekly report:

Headline reads, "Potential pivot, records fall, greed wins, bears hibernate, gold consolidates". Following is a link:

http://enrichedinvesting.com/wp-content/uploads/2020/01/Potential-pivot-records-fall-greed-wins-bears-hibernate-gold-consolidates.pdf

Observation

Seasonal and technical action by the Chinese equities market during the next few weeks will be watched closely for guidance on the intermediate trend for world equity markets. On a seasonal basis, the Shanghai Composite Index has a history of moving flat -to- lower in January, bottoming on Chinese New Year and moving higher thereafter to at least mid-April. This year, start of Chinese New Year is January 25th. Chinese equity markets are closed early next week for the holiday.

Chinese leadership traditionally releases plans for the economy just after the start of the New Year, a bullish event for equity prices. This year, the truce in trade negotiations with the U.S. should help equity prices. On the other hand, a recent breakout of a deadly flu virus raises uncertainty.

Current technicals for the Shanghai Composite Index following the gain to 3096 yesterday are mixed, typical during the month of January. Index trend is up, it trades above 20, 50 and 200 day moving averages, but its strength relative to the S&P 500 is neutral and its momentum indicators are trending down from short term overbought levels.

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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