Tech Talk for Tuesday October 27th 2020
American International Group (AIG), an S&P 100 stock moved above $32.67 resuming an intermediate uptrend.
![clip_image001[5]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2020/10/clip_image0015-10.png "clip_image001[5]")
Eli Lilly (LLY), an S&P 100 stock moved below $139.00 extending an intermediate downtrend.
![clip_image002[5]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2020/10/clip_image0025-8.png "clip_image002[5]")
Teck Resources (TECK), a TSX 60 stock moved below US$13.05 setting an intermediate downtrend.
![clip_image003[5]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2020/10/clip_image0035-8.png "clip_image003[5]")
Dollarama (DOL), a TSX 60 stock moved below $48.00 completing a double top pattern.
![clip_image004[5]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2020/10/clip_image0045-6.png "clip_image004[5]")
Dow Jones Industrial Average stocks, Caterpillar, Pfizer and MMM moved lower in early trading despite reporting higher than consensus third quarter results before the opening.
Pre-opening Comments for Tuesday October 27th
U.S. equity index futures were higher this morning. S&P 500 futures were up 12 points in pre-opening trade.
Index futures were virtually unchanged following release of the September Durable Goods Orders report at 8:30 AM EDT. Consensus was an increase of 0.5% versus a gain of 0.5% in August. Actual was an increase of 1.9%. Excluding transportation orders, consensus was an increase of 0.4% versus a gain of 0.6% in August. Actual was an increase of 0.8%.
Advanced Micro Devices (AMD $82.23) reached an agreement to purchase Xilinx (XLNX $114.55) in a $35 billion all-stock deal. Each Xilinx share converts to 1.7 Advanced Micro Devices shares. Xilinx gained $18.30 to $132.85 in pre-opening trade.
Pfizer (PFE $37.92) is expected to open higher after reporting higher than consensus third quarter revenues and earnings.
Merck gained $1.07 to $79.91 after reporting higher than consensus third quarter revenues and earnings.
Caterpillar (CAT $163.20) is expected to open higher after reporting higher than consensus third quarter earnings.
EquityClock's Daily Comment
Following is a link:
http://www.equityclock.com/2020/10/26/stock-market-outlook-for-october-27-2020/
Technical Notes for Monday October 26th
The VIX Index spiked above 31.18 on news of a growing pandemic in the U.S.
Dow Jones Industrial Average moved below its 20 day moving average at28221.63 and its 50 day moving average at 28021.11.
S&P 500 Index moved below its 20 day moving average at 3,433.10 and 50 day moving average at 3.408.30
The NASDAQ Composite Index moved below its 20 day moving average at 11,461.80 and briefly moved below its50 day moving average at 11,310.34.
Turkey iShares (TUR) moved below $19.12 extending an intermediate uptrend.
Germany iShares (EWG) moved below $28.05 completing a Head & Shoulders pattern.
Cenovus (CVE), a TSX 60 stock moved below Cdn$4.59 extending an intermediate downtrend. Cenovus offered to acquire Husky Energy in a share exchange deal last night.
Canadian National Railway (CNR), a TSX 60 stock moved below $135.80 and $135.16 setting an intermediate downtrend.
Oracle (ORCL), an S&P 100 stock moved below $58.05 completing a double top pattern.
Johnson & Johnson (JNJ), a Dow Jones Industrial stock moved below $142.96 completing a double top pattern.
MasterCard (MA), an S&P 100 stock moved below $320.44 completing a double top pattern.
Visa (V), a Dow Jones Industrial stock moved below $193.13 completing a double top pattern.
Cisco (CSCO), an S&P 100 stock moved below $37.26 extending an intermediate downtrend.
Intel (INTC), a Dow Jones Industrial Average stock moved below $48.42 and $46.63 extending an intermediate downtrend.
BHP Inc. (BHP), one of the world's largest base metal miners, moved below $50.34 extending an intermediate downtrend.
Trader's Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for October 26th 2020
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for October 26th 2020
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for October 26th 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 their weekly comment. Headline reads, "Contentious election aftermath, chaos toppy divergence, rising rates, ravaged revival, small cap challenge". Following is the link:
S&P 500 Momentum Barometer
The Barometer plunged 13.63 to 54.51 yesterday. It changed from intermediate overbought to intermediate neutral on a move below 60.00 and continues to trend lower.
TSX Momentum Barometer
The Barometer plunged 13.74 to 43.13 yesterday. It remains intermediate neutral and is trending lower.
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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