Tech Talk for Wednesday October 26th 2022

U.S. equity index futures were lower this morning. S&P 500 futures were down 31 points in pre-opening trade.

Canadian focus today is on the Bank of Canada's announcement at 10:00 AM EDT. Consensus is that the Bank of Canada will raise its lending rate to major Canadian banks by another 0.75% to 4.00%.

Alphabet $GOOGL dropped $5.00 to $99.56 after reporting less than consensus third quarter revenues and earnings.

Microsoft $MSFT dropped $5.91 to 244.75 despite reporting slightly higher than consensus fiscal first quarter earnings. Revenues from Azure and cloud were less than consensus. The company also lowered fiscal second quarter guidance.

Texas Instruments $TXN fell $8.16 to $154.00 after lowering fourth quarter guidance.

Visa $V added $1.25 to 195.63 after reporting higher than consensus third quarter revenues and earnings. The company also raised its dividend by 20%.

Chipotle $CMG initially moved higher after reporting higher than consensus third quarter revenues and earnings, but subsequently dropped $38.18 to $1,545.84

Canadian National Railway $CNI is expected to open higher after reporting higher than consensus third quarter results. The company also raised guidance.

EquityClock's Daily Comment

Headline reads "Tuesday's "dash for trash" had the riskiest, most beaten down segments of the market rally the most, an indication that the bears are becoming concerned of a more substantial bottoming pattern for stocks at hand".

http://www.equityclock.com/2022/10/25/stock-market-outlook-for-october-26-2022/

Technical Notes for yesterday

Equal weight S&P 500 ETF $RSP moved above intermediate resistance at $135.69.

Materials SPDRs $XLB moved above $72.88 completing a double bottom pattern.

Europe ETFs are showing early signs of recovery. Europe iShares $IEV moved above $40.43 and Eurozone iShares $EZU moved above $34.56 completing double bottom patterns.

Mexico iShares $EWW moved above $48.74 completing a double bottom.

U.S. money center banks are developing bottoming patterns. Citigroup $C moved above $44.75 and $44.94 completing a short term reverse Head & Shoulders pattern. Bank of New York Mellon $BK moved above $41.52 and $41.56 completing a short term reverse Head & Shoulders pattern. Capital One $COF moved above $99.97 completing a double bottom pattern.

U.S. Broker iShares $IAI moved above intermediate resistance at $91.20.

Fertilizer stocks are advancing during their period of seasonal strength. Mosaic $MOS moved above $53.28 resuming an intermediate uptrend.

Ford $F an S&P 100 stock moved above $12.63 completing a double bottom pattern.

AutoDesk $ADSK a NASDAQ 100 stock moved above $209.64 completing a double bottom pattern.

Palladium ETN $PALL moved below intermediate support at $180.41.

Trader's Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for October 25th 2022

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for October 25th 2022

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for October 25th 2021

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometers

The intermediate term Barometer advanced 11.00 to 46.40 yesterday. It changed from Oversold to Neutral on a move above 40.00. Trend remains up.

The long term Barometer added 4.80 to 29.60 yesterday. It remains Oversold. Trend remains up.

TSX Momentum Barometers

The intermediate term Barometer advanced 9.32 to 44.07 yesterday. It changed from Oversold to Neutral on a move above 40.00. Trend remains up.

The long term Barometer added 3.81 to 33.47 yesterday. It remains Oversold. Trend remains up.

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