Tech Talk for Wednesday October 24th 2018

U.S. equity index futures were lower this morning. S&P 500 futures were down 5 points in pre-opening trade.

The Canadian Dollar was steady at U.S.76.43 cents prior to the Bank of Canada's monetary statement scheduled to be released at 10:00 AM EDT. The Bank of Canada widely is expected to increase its loan rate to major banks by 0.25%.

U.S. equity index futures recovered following release of results from by Boeing (BA). The stock gained $15.68 to $365.73 after reporting better than consensus third quarter sales and earnings. The company also raised guidance for the fourth quarter.

Canadian National Railway (CNR $350.05 Cdn) is expected to open higher after reporting higher than consensus third quarter sales and earnings.

Texas Instruments dropped $5.77 to $94.48 after reporting lower than consensus third quarter revenues. The company also lowered guidance. Stifel Nicolaus lowered its target price to $97 from $110.

Restaurants International (QSR $74.41 Cdn) is expected to open lower after reporting lower than consensus third quarter sales and earnings.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/10/23/stock-market-outlook-for-october-24-2018/

Note seasonality charts on U.S. Banks, Homebuilding Industry, Auto & Components Industry and Lumber Futures.

Observation

A wild day by U.S. equity indices! The Dow Jones Industrial Average from its low at 10:00 AM gained 422 points by the close. Normally, investors would cheer with this kind of gain. Not so much yesterday. Despite the mid-day gain, the Average closed down 125.98 points.

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:30: Bearish. 37 S&P 500 stocks broke intermediate support. Two broke resistance: $MCD $VZ

Editor's Note: After 10:30 AM EDT, two additional breakouts: WMT and HRL. Additional breakdowns: JWN, ROST, COP, CVX, FTI, HES, LNC, GILD, VRTX.

Energy led U.S. market on the downside. Breakdowns: $XOP $COP $CVX $FTI $HES $EOG $EQT $HAL $MRO $NBL $PXD

Energy led Cdn. market on the downside: $XEG.CA $ARX.CA $CVE.CA $CPG.CA

U.S. Financials break support extending intermediate downtrends: $XLF $C $MET $PRU $LNC.

Bank ETF bouncing from its calculated downside target, now positive on the day. #Capitulation $KBE $XLF

Good action by U.S. indices after 10:00! DJIA recovered about 500 points from its overnight low at -548. $WMT, a Dow Jones Industrial stock moved above $97.85.

Cdn. banks and related ETFs breaking support extending an intermediate downtrend: $ZEB.CA, $RY.CA $NA.CA

Editor's Note: Nice recovery by stocks in the sector after the sharply lower opening

Trader's Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for October 23rd 2018

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for October 23rd 2018

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for October 23rd 2018

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer dropped 3.20 to 19.80 yesterday. It remains intermediate oversold and showing technical signs of bottoming.

TSX Momentum Barometer

The Barometer added 0.10 to 23.85 yesterday. It remains intermediate oversold and showing technical signs of bottoming.

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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