Tech Talk for Tuesday May 18th 2021

U.S. equity index futures were higher this morning. S&P 500 futures were up 7 points in pre-opening trade.

Equity index futures were virtually unchanged following release of April U.S. Housing Starts at 8:30 AM EDT. Consensus was a slip to 1.710 million units from 1.759 million units in March. Actual was 1.569 million units.

Home Depot advanced $7.62 to $327.63 after reporting higher than consensus first quarter sales and earnings.

Wal-Mart gained $4.20 to $143.07 after reporting higher than consensus first quarter revenues and earnings.

Macy's added $0.89 to $20.05 after reporting higher than consensus first quarter revenues and earnings.

Costco added $2.46 to $386.42 after Oppenheimer raised its target price from $400 to $425.

EquityClock's Daily Comment

Following is a link:

http://www.equityclock.com/2021/05/17/stock-market-outlook-for-may-18-2021/

Technical Notes Released Yesterday at StockTwits.com@EquityClock

Merck $MRK a Dow Jones Industrial Average stock moved above $79.49 extending an intermediate uptrend.

Chile iShares $ECH moved below $29.89 setting an intermediate downtrend. The right wing coalition suffered an electoral defeat.

Canadian National Railway $CNR.CA a TSX 60 stock moved below Cdn$128.63 setting an intermediate downtrend.

S&P/TSX Gold iShares $XGD.CA moved above $20.29 extending to an intermediate uptrend. Responding to higher gold prices

Strength in gold and gold stocks/ETFs including $GDX $GDXJ and $XGD.CA is happening earlier than usual this year. Historically, they move higher on a real and relative basis starting from early June for a seasonal trade to mid-September.

Strength in gold stocks/ETFs relative to Gold is a leading indicator for a seasonal play in the gold/gold equity sector

Silver miner equities and their related ETF $SIL are notably stronger. Nice breakout by SIL above $46.58 extending an intermediate uptrend!

Agnico-Eagle $AEM.CA a TSX 60 stock moved above Cdn$85.65 extending an intermediate uptrend.

Another precious metal producer breakout! Kinross $K.CA a TSX 60 stock moved above $Cdn$9.81 extending an intermediate uptrend.

Another precious metal producer breakout! Hecla Mining $HL moved above $8.44 extending an intermediate uptrend.

Another precious metal equity breakout! Wheaton Precious Metals $WPM.CA, a TSX 60 stock moved above Cdn$54.96 extending an intermediate uptrend. Also $WPM moved above US$46.96

Canadian forest product stocks are under technical pressure. West Fraser Timber $WFG.CA and $CFP.CA moved below intermediate support setting double top patterns.

Trader's Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for May 17th 2021

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for May 17th 2021

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for May 17th 2021

Green: Increase from previous day

Red: Decrease from previous day

All seasonality ratings are based on performance relative to the S&P 500 Index

S&P 500 Momentum Barometers

The intermediate term Barometer slipped 1.60 to 75.75 yesterday. It remains Overbought.

The long term Barometer eased 0.66 to 91.18 yesterday. It remains Extremely Overbought.

TSX Momentum Barometers

The intermediate term Barometer added 2.35 to 68.54 yesterday. It remains Overbought.

The long term Barometer added 0.94 to 77.00 yesterday. It remains Overbought.

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