Tech Talk for Tuesday January 28th 2020

U.S. equity index futures were higher this morning. S&P 500 futures were up 21 points in pre-opening trade.

Index futures were virtually unchanged following release of December Durable Goods Orders at 8:30 AM EST. Consensus was an increase of 0.3% versus a revised drop of 3.1% in November. Actual was an increase of 2.4%. Excluding Transportation Orders, consensus for December Durable Goods Orders was an increase of 0.3% versus a decline of 0.1% in November. Actual was a decline of 0.1%..

MMM (MMM $175.63) is expected to open lower after reporting lower than consensus fourth quarter earnings.

Lockheed Martin added $9.56 to $441.94 after reporting higher than consensus fourth quarter earnings.

Whirlpool (WHR $148.23) is expected to open higher after reporting higher than consensus fourth quarter earnings.

Delphi jumped $5.89 to $15.69 after Borg Warner made a $3.3 billion all-stock deal to purchase the company.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2020/01/27/stock-market-outlook-for-january-28-2020/

Note seasonality charts on the VIX Index, Gold Shares SPDRs, U.S. Dollar Index Futures and New Home Sales.

Observations

Lots of responses in U.S. markets to coronavirus concerns!

The VIX Index spiked

Interest rates declined. Long term Treasury iShares extended their breakout.

Broadly based U.S. equity indices broke below their 20 day moving average.

StockTwits released yesterday @EquityClock

ExxonMobil $XOM, a Dow Jones Industrial stock moved below $65.51 extending an intermediate downtrend.

Alexion Pharma $ALXN, a NASDAQ 100 stock moved below $104.56 setting an intermediate downtrend.

Align Technology $ALGN, a NASDAQ 100 stock moved below $257.43 setting an intermediate downtrend.

Caterpillar $CAT, a Dow Jones Industrial stock moved below $137.60 completing a double top pattern.

UPS $UPS, an S&P 100 stock moved below $114.25 setting an intermediate downtrend.

Gold SPDRs $GLD moved above $148.61 to a 7 year high extending an intermediate uptrend

Materials SPDRs $XLB moved below $59.20 setting an intermediate downtrend.

Base metals stocks and ETFs are notably weaker. Global Base Metals iShares $XBM.CA moved below $10.55 setting an intermediate downtrend. Individual base metals equities breaking support include $BHP $HBM.CA $LUN.CA

United Kingdom iShares $EWU moved below $33.49 completing a double top pattern.

S&P Bank SPDRs $KBE moved below $44.59 setting an intermediate downtrend

Uranium ETF $URA moved below $10.56 setting an intermediate downtrend.

Auto ETF $CARZ moved below $32.70 completing a double top pattern.

Gasoline ETN $UGA moved below $28.20 setting an intermediate downtrend

China A shares Fund $CAF moved below $19.37 setting an intermediate downtrend.

Lumber and Forestry iShares $WOOD moved below $63.70 setting an intermediate downtrend.

Saputo $SAP.CA, a TSX 60 stock moved above $40.84 setting an intermediate uptrend.

UnitedHealth Group $UNH, a Dow Jones Industrial stock moved below $284.36 completing a double top pattern

New Home Sales up 23.7% (NSA) in 2019, best calendar year gain since 1991. Average annual increase over the past 20 years has been 1.0%.

Trader's Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for January 27th 2020

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for January 27th 2020

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for January 27th 2020

Green: Increase from previous day

Red: Decrease from previous day

Technical Scoop

Thank you to David Chapman and www.EnrichedInvesting.com for a link to the following weekly report. Headline reads,

"Epidemic affect, gold rise, market swoon, bond benefit, spread narrowing, dollar hegemony, dot.com bubble"

http://enrichedinvesting.com/wp-content/uploads/2020/01/Epidemic-affect-gold-rise-market-swoon-bond-benefit-spread-narrowing-dollar-hegemony-dotcom-bubble.pdf

Keith Richards' Blog

Keith asks, "How sick will coronavirus flu make the market"? Following is the link:

https://www.valuetrend.ca/special-report-how-sick-will-the-coronavirus-flu-make-the-market/

S&P 500 Momentum Barometer

The Barometer dropped 11.82 to 55.51 yesterday. It changed from intermediate overbought to intermediate neutral on a move below 60.00 and is trending down.

TSX Momentum Barometer

The Barometer dropped 6.42 to 63.30 yesterday. It remains intermediate overbought and trending down.

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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