Tech Talk for Wednesday September 19th 2018

U.S. equity index futures were lower this morning. S&P 500 futures were down 4 points in pre-opening trade.

E-Trade (ETFC $53.76) is expected to open higher after Jefferies raised its rating on the stock to Buy from Hold.

Humana (HUM $335.99) is expected to open higher after Sun Trust increased its target price to $380 to $350.

Autozone (AZO $732.26) is expected to open higher after JP Morgan increased its target price to $880 from $800.

Netflix gained $4.65 to $372.30 after Guggenheim increased its target to $420 from $360.

EquityClock's Daily Comment

Following is a link:
http://www.equityclock.com/2018/09/18/stock-market-outlook-for-september-19-2018/

Note seasonality charts on the Nikkei Average, Shanghai Composite, Manufactured Goods Sales and Manufactured Inventories.

Observations

Strength in U.S. equity indices yesterday was triggered by strength in Chinese indices and related ETFs in anticipation of start of trade negotiations.

Strength in Chinese indices triggered significant gains in base metal and steel stocks (XLE).

Nice breakout by the Agriculture Products ETF above $65.18! 'Tis the season for strength to the end of the year!

Natural gas prices soared on realization that inventory levels are near a 20 year low and demand remains higher than average for this time of year due to higher than average temperatures in eastern North America. 'Tis the season for strength to late December! "Gassy" stocks and related ETFs also responded.

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:15: Quietly mixed. Intermediate breakouts: $KMI $SWK $PKG. Breakdowns: $GIS $WMT

Editor's Note: After 10:15 AM EDT, breakouts included WBA, PNR, HRS, GD, FLR and HAS. No breakdowns.

Wal-Mart $WMT, a Dow Jones Industrial stock moved below $94.29 setting an intermediate downtrend.

S&P Metals & Mining SPDRs moved above $34.75 setting an intermediate uptrend.

Soybean ETN $SOYB moved below $15.36 to an all-time low setting an intermediate downtrend.

Long term Treasury Bond ETF $TLT moved below $117.80 setting an intermediate downtrend.

Yield on 10 year U.S. Treasuries $TNX moved above 3.009 and 3.016 testing resistance at 3.115 prior to the FOMC meeting next week.

Editor's Note: TIPs also moved below support at $54.45

Celestica $CLS.CA $CLS moved below $15.82 Cdn completing a Head & Shoulders pattern.

Walgreen Boots $WBA, a Dow Jones Industrial stock moved above $70.95 extending an intermediate uptrend.

Intact Financial $IFC.CA moved above $106.58 to an all-time high extending an intermediate uptrend.

S&P 500 Equal Weight ETF $RSP moved above $107.89 to an all-time high extending an intermediate uptrend.

Canada Manufacturing Sales down 7.1% (NSA) in July, much better than the 10.7% decline that is average for the month. $MACRO #CDNecon #CAD

Trader's Corner

Daily Seasonal/Technical Equity Trends for September 18th 2018

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for September 18th 2018

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for September 18th 2018

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer was unchanged yesterday at 67.60. It remains intermediate overbought and showing signs of rolling over.

TSX Momentum Barometer

The Barometer was unchanged yesterday at 39.08. It remains intermediate oversold 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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