Tech Talk for Friday October 12th 2018

U.S. equity index futures were higher this morning. S&P 500 futures were up 29 points in pre-opening trade.

U.S. bank stocks generally moved higher following release of third quarter results this morning. JP Morgan, Citigroup and Wells Fargo moved higher after releasing strong third quarter earnings.

Microsoft gained $3.14 to $109.05 after Macquarie upgraded the stock to Outperform from Neutral.

Canadian Pacific (CP $264.97 Cdn) is expected to open higher after Stifel Nicolaus raised its rating to Buy from Hold.

Eastman Chemical (EMN $82.05) is expected to open higher after JP Morgan increased its rating to Overweight from Neutral.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/10/11/stock-market-outlook-for-october-12-2018/

Note seasonality reports on the Consumer Price Index, Crude Oil Days of Supply, Gasoline Days of Supply, Crude Oil and the Telecommunications Sector.

Observations

World equity markets were spooked partially by a 5% drop by the Shanghai Composite Index to a four year low.

Equal Weighted S&P 500 Index and related ETF had a rough day.

StockTwits released yesterday @EquityClock

Technical action by S&P 500 stocks to 10:15: Bearish. 27 stocks broke intermediate support. One broke resistance: $MUR.

Gold ETN $GLD moved above $114.78 completing a double bottom pattern

TSX Gold iShares $XGD.CA moved above $10.21 completing a reverse Head & Shoulders pattern.

Individual Canadian gold breakouts: $YRI.CA $AEM.CA.

United Kingdom iShares $EWU moved below $32.65 extending an intermediate downtrend.

TSX 60 stocks breaking intermediate support this morning: $BAM $QSR.CA $CNR.CA, $TRP.CA $BNS.CA

TSX Financials iShares $XFN.CA moved below $36.89 extending an intermediate downtrend.

Frontier iShares $FM moved below $27.46 extending an intermediate downtrend.

Gold Miners ETF $GDX moved above $19.49 completing a reverse Head & Shoulders pattern.

Mexico iShares $EWW moved below $48.40 extending an intermediate downtrend.

Junior Gold ETF $GDXJ moved above $28.74 and $29.14 completing a reverse Head & Shoulders pattern.

First Majestic Silver $AG $FR.CA moved above $7,83 Cdn and $6.07 U.S. completing a double bottom pattern.

The VIX Index spiked higher after 2:30 PM when a large program sell order hit the market. Another 39 S&P 500 stocks broke support thereafter.

TMX Group $X.CA moved below $82.56 and $83.94 completing a Head & Shoulders pattern.

Days of supply of #Oil at 24.6, now three days above average for this time of year. $USO $CL_F $XLE

US production of Oil hits another all-time high, pressuring stockpiles of the commodity. $USO $CL_F $XLE

US CPI up 0.1% (NSA) in September, half of the average increase for this time of year. $MACRO #Economy #Inflation

Trader's Corner

Daily Seasonal/Technical Equity Trends for October 11th 2018

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for October 11th 2018

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for October 11th 2018

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer dropped another 13.40 to 11.00 yesterday, a level that has not been reached since January 2016. It is deeply oversold, but has yet to show signs of bottoming.

TSX Momentum Barometer

The Barometer dropped another 0.42 to 18.49 yesterday. It remains intermediate oversold, but has yet to show signs of bottoming.

Seasonal Advantage Portfolio continues to mitigate much of this market weakness. How are you positioned? equityclock.com/about/seaso… $SPX $SPY

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

Sponsored By...