Tech Talk for Wednesday January 31st 2018

U.S. equity index futures were higher this morning. S&P 500 futures were up 12 points in pre-opening trade.

Index futures maintained gains following release of the January ADP employment report at 8:15 AM EST. Consensus was an increase of 195,000 versus 242,000 in December. Actual was 234,000.

The Canadian Dollar added to overnight gains to US 81.54 cents following released of Canada's November GDP report released at 8:30 AM EST. Consensus was an increase of 0.4% versus no change in October. Actual was an increase of 0.4%.

Fourth quarter reports continue to pour in. Companies that reported since yesterday's close included Avery Dennison, Boeing, Broadcomm, DR Horton, Electronic Arts, Eli Lilly, Ingersoll-Rand, McDonalds, Pitney Bowes, Thermo Fisher and Tupperware.

Foot Locker added $1.70 to $51.60 after Oppenheimer and Cowen raised their target price on the stock.

Travelers (TRV $148.72) is expected to open higher after MKM Partners raised their target price to $150 from $135.

Canadian oil sand stocks are expected to open lower after the British Columbia government moved to block construction of the Trans Mountain pipeline expansion.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/01/30/stock-market-outlook-for-january-31-2018/

See seasonal charts on Case Shiller 20 City Price Index

Observations

An additional spike in volatility! The spike was triggered by a downward shift in short term momentum in equity indices, commodities and sectors. The VIX Index reached a 5 month high.

VXN closed at a 15 month high.

StockTwits released yesterday @EquityClock

Technical action by S&P 500 stock to 10:00: Bearish. Breakout: $HRS. Breakdowns: $PHM $MET $MNK $AAPL $GLW $IFF $ARE.

Editor's Note: After 10:00, no breakouts. Breakdowns: PWR and BEN

Cdn. "gassy" stocks continue to move lower despite higher U.S. natural gas prices. Cdn. companies don't benefit. $BNP.CA

Thomson Reuters $TRI.CA, a TSX 60 stock popped above $57.50 on confirmation of negotiations with Blackstone.

Magna Internationals $MG.CA, a TSX 60 stock moved below $70.70 completing a double top pattern.

Corn ETN $CORN moved above $17.15 extending its double bottom pattern.

Case-Shiller reporting that home prices increased by 0.2% (NSA) in November. Average change: -0.3% #Housing #Economy $MACRO

Trader's Corner

Note the significant momentum shift for a wide variety of indices, commodities and sectors.

Daily Seasonal/Technical Equity Trends for January 30th 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Commodities Trends for January 30th 2018

Green: Increase from previous day

Red: Decrease from previous day

* Excludes adjustment from rollover of futures contracts

Daily Seasonal/Technical Sector Trends for January 30th 2018

Green: Increase from previous day

Red: Decrease from previous day

S&P Momentum Barometer

The Barometer dropped another 3.80 to 76.40 yesterday. It remains intermediate overbought and has turned down.

TSX Momentum Barometer

The Barometer dropped another 6.58 to 39.92 yesterday. It remains intermediate neutral 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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