Tech Talk for Wednesday May 29th 2019

U.S. equity index futures were lower this morning. S&P 500 futures were down 16 points in pre-opening trade.

The Canadian Dollar was virtually unchanged at U.S. 74.05 cents prior to release of the Bank of Canada's statement on interest rates at 10:00 AM EDT. Consensus is that the Bank of Canada will maintain its overnight lending rate to major banks at 1.75%.

Bank of Montreal (BMO $103.04) is expected to open lower after reporting slightly lower than consensus fiscal second quarter earnings.

Canadian Western Bank (CWB $27.88) is expected to open lower after reporting slightly lower fiscal second quarter earnings.

Canada Goose (GOOS $66.63) is expected to open higher after reporting higher than consensus quarterly earnings.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2019/05/28/stock-market-outlook-for-may-29-2019/

Short Term Breakdowns by U.S. Equity Indices

U.S. equity indices are expected to open lower this morning. They are testing short term support levels. Breaks below these levels will establish short term Head & Shoulders or Double Top patterns. Support levels are:

StockTwits released yesterday @EquityClock

Home Capital Group $HCG.CA moved above $19.31 extending an intermediate uptrend.

Wheat ETN $WEAT moved above $5.52 completing a base building pattern.

Scotia Bank $BNS.CA, a TSX 60 stock moved below $69.57 setting an intermediate downtrend. It reported lower than consensus fiscal second quarter earnings.

Brookfield Infrastructure $BIP.U.CA $BIP moved above $57.06 Cdn and $42.54 U.S. to all-time highs extending an intermediate uptrend.

Technical action by S&P 500 stocks to 10:00: Bullish. Intermediate breakouts: $AZO $EQR $ICE $RMD $ESS. Breakdown: $PRGO

Editor's Note: After 10:00 AM EDT, intermediate breakouts included SLG and BSX. Breakdowns included: MO, K, PM, WRK, HOG, TJX and VFC.

Coffee ETN $JJOFF moved above $9.22 completing a base building pattern.

Soft commodities are moving higher. Grain ETN $JJGTF (one third each in corn, wheat and soybeans) moved above $22.20.

Editor's Note: Strength in corn added significantly to JJGTF.

S&P/Case-Shiller indicating that home prices in the 20 largest cities in the US were up 0.7% (NSA) in March, stronger than the 0.3% increase that is average for the month.

Trader's Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for May 28th 2019

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for May 28th 2019

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for May 28th 2019

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer dropped 6.60 to 36.80 yesterday. It moved to intermediate oversold from intermediate neutral on a move below 40.00 and continues to trend down.

TSX Momentum Barometer

The Barometer added 1.69 to 45.15 from Friday. It remains intermediate neutral and continues to trend 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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