Tech Talk for Tuesday January 30th 2018

U.S. equity index futures are lower this morning. S&P 500 futures were down 11 points in pre-opening trade.

Apple dropped $2.00 to $165.96 on reports of a slowdown in iPhone production. The stock is expected to open below support at $166.46.

Fourth quarter reports continue to flow in. Reports released this morning included Harley Davidson, McDonalds, Pfizer and Aetna.

Thomson Reuters gained $4.55 to $48.00 after confirming a bid by Blackstone to purchase its financial services business.

UnitedHealth Group dropped $16.91 to $230.50 and CVS plunged $5.63 to $78.00 after Amazon, Berkshire Hathaway and JP Morgan announced plans to combine healthcare services for their employees.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/01/29/stock-market-outlook-for-january-30-2018/

Note seasonality charts on the TSX Composite Index, Canadian Dollar, NYSE Margin Debt, Credit balances in margin accounts, Commercial and Industrial loans, Airline industry and Chemical industry.

Observations

Volatility in U.S. equity markets spiked when the Dow Jones Industrial Average recorded its largest one day drop since September 2017.

Equity indices responded to yield on 10 year Treasuries reaching a 4 year high.

Conversely, price of the long term Treasury ETF broke to a 3 month low. A move below $121.66 will complete a Head & Shoulders/ Double Top pattern.

StockTwits released yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Quietly bullish. Breakouts: $DPS $ZBH $COO $LLY. No breakdowns.

Editor's Note: After 10:00 AM EST, no additional breakouts. Breakdown: DHI

Cascade $CAS.CA moved above $14.88 extending an intermediate uptrend.

AltaGas $ALA.CA moved below $27.89 setting an intermediate downtrend.

Brookfield Asset Management $BAM, a TSX 60 stock moved below $41.34 extending an intermediate downtrend.

Inter Pipeline $IPL.CA, a TSX 60 stock moved below $24.90 completing a Head & Shoulders pattern.

Restaurant Brands $QSR.CA, a TSX 60 stock moved below $75.16 extending an intermediate downtrend.

Cameco $CCJ, a TSX 60 stock moved below $9.12 establishing an intermediate downtrend.

Trader's Corner

Daily Seasonal/Technical Equity Trends for January 29th 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Commodities Trends for January 29th 2018

Green: Increase from previous day

Red: Decrease from previous day

* Excludes adjustment from rollover of futures contracts (as happened last week)

Daily Seasonal/Technical Sector Trends for January 29th 2018

Green: Increase from previous day

Red: Decrease from previous day

Keith Richards' Blog

Keith says, "A near term correction is probable". Following is a link:

http://www.valuetrend.ca/neartermed-correction-probable/

S&P 500 Momentum Barometer

The Barometer dropped 3.80 to 80.20 yesterday. It remains intermediate overbought and showing early signs of rolling over.

TSX Momentum Barometer

The Barometer plunged 9.70 to 46.50 yesterday. It has dropped to intermediate neutral from overbought and is 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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