Tech Talk for Wednesday October 12th 2022

U.S. equity index futures were higher this morning. S&P 500 futures were up 9 points in pre-opening trade.

Index futures moved lower following release of the September Producer Price Index at 8:30 AM EDT. Consensus was an increase of 0.2% versus a drop of 0.1% in August. Actual was an increase of 0.4%. On a year-over-year basis, consensus was an increase of 8.4% versus a gain of 8.7% in August. Actual was an increase of 8.5%. Excluding food and energy, consensus was an increase of 0.3% versus a gain of 0.4% in August. Actual was an increase of 0.3%. On a year-over-year basis, consensus was an increase of 7.3% versus a gain of 7.3% in August. Actual was an increase of 7.2%.

Pepsico added $4.52 to $167.11 after reporting higher than consensus third quarter revenues and earnings. The company also raised guidance.

Brookfield Renewable Partners gained $0.03 to US$29.10 and Cameco dropped $3.37 to US$22.45 after reaching an agreement to purchase Westinghouse Electric' nuclear technology services in a deal valued at $7.88 billion.

EquityClock's Daily Comment

Headline reads "While both asset classes have been dismal this year, bonds continue to outperform stocks, which has kept the stock market on a sell signal according this metric since the start of the year".

http://www.equityclock.com/2022/10/11/stock-market-outlook-for-october-12-2022/

Technical Notes for yesterday

NASDAQ Composite Index moved below 10,565.13 extending an intermediate downtrend.

S&P/TSX 60 Index moved below 1,104.88 extending an intermediate downtrend.

TSX Financials iShares $XFN.TO moved below $42.09 extending an intermediate downtrend.

Bank of Montreal $BMO a TSX 60 stock moved below $117.50 extending an intermediate downtrend.

Brookfield Infrastructure $BIP.UN a TSX 60 stock moved below $46.41 extending an intermediate downtrend.

Bausch Health $BHC.TO a TSX 60 stock moved below support at Cdn$9.06 completing a double top pattern.

Netflix $NFLX an S&P 100 stock moved below $214.69 extending an intermediate downtrend.

NASDAQ 100 stocks moving below intermediate support included TCOM, ASML, SNPS, KLAC, ADI and JD.

Trader's Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for October 11th 2022

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for October 11th 2022

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for October 11th 2021

Green: Increase from previous day

Red: Decrease from previous day

Links offered by valued providers

Quint Tatro says "People are underestimating how quickly CPI data can fall this year"

People are underestimating how quickly CPI data can fall this year, says Quint Tatro - YouTube

Chart of the Day

Lumber futures recently entered their period of seasonal strength from October 1st to February 5th. Technicals have started to improve. Yesterday, futures moved above their 20 day moving average (Added 2 to score) and strength relative to the S&P 500 Index turned positive from neutral (Add 2 to score). Technical score increased yesterday from -2 to +2. Intermediate trend remains down (Score:-2) and the three daily momentum indicators are trend higher (Score: 2)

S&P 500 Momentum Barometers

The intermediate term Barometer slipped 0.80 to 11.80 yesterday. It remains Oversold.

The long term Barometer added 0.20 to 16.60 yesterday. It remains Oversold.

TSX Momentum Barometers

The intermediate term Barometer plunged 5.08 yesterday. It remains Oversold.

The long term Barometer dropped 2.97 to 21.61 yesterday. It remains Oversold.

Disclaimer: Seasonality ratings 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