Tech Talk for Friday October 14th 2022

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

Index futures moved slightly higher following release of September U.S. Retail Sales at 8:30 AM EDT. Consensus was an increase of 0.3% versus a gain of 0.3% in August. Actual was unchanged. Excluding auto sales, consensus was an increase of 0.1% versus a drop of 0.3% in August. Actual was an increase of 0.1%.

UnitedHealth Group gained $6.59 to $516.50 after reporting higher than consensus third quarter revenues and earnings.

JP Morgan gained $2.16 to $111.53 after reporting higher than consensus third quarter revenues and earnings.

Wells Fargo added $0.61 to $42.99 after reporting higher than consensus third quarter revenues.

EquityClock's Daily Comment

Headline reads "Reversal sessions in the equity market to the magnitude realized on Thursday are very rare, but they typically indicate indecision resulting in a spotty track record of forward returns for stocks".

http://www.equityclock.com/2022/10/13/stock-market-outlook-for-october-14-2022/

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Greg Schnell notes "Nice clues arrived on Thursday".

https://stockcharts.com/articles/canada/2022/10/nice-clues-arrived-on-thursday-77.html

Hap Sneddon on BNN Bloomberg late yesterday says "We have been looking for a bottom in equity markets".

Energy is the strongest part of the market in Canada and the U.S.: Technical analyst Hap Sneddon – Video – BNN (bnnbloomberg.ca)

Technical Notes for yesterday

Editor's Note: North American equity markets opened strongly lower yesterday after the release of a "hotter than expected" September CPI report. By 10:00 AM EDT, indices entered into a spectacular "outside reversal", a technically bullish event that is occurring when equity indices are extremely oversold. The following notes show the technical breakdowns recorded by indices, ETFs and individual equities prior to the reversal:

Dow Jones Industrial Average briefly dropped below 28,715.85 touching a two year low.

TSX Composite Index briefly dropped below $10,169.86 touching a 21 month low.

Selected ETFs briefly dropped below intermediate support: XLF, XLV, EZU, EWY, EWI, EFA, EZA, PIN, DIA, RSP, IEV, IWM, IAI, IHI, KBE, IYT, PHO, IHI, ZEM.TO

Selected S&P 100 stocks briefly dropped below intermediate support: AXP, BAC, BRK.B, IBM, MA, V, DOW, LOW

Selected NASDAQ 100 stocks briefly dropped below intermediate support: FAST, BIDU, CDW, EBAY, FISV, GOOG, MELI, NXPI, VRSN, TMUS, IDXX

Selected TSX 60 stocks dropped below intermediate support: NA, MFC, RY, CNR, GIB.A, CSU

Trader's Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for October 13th 2022

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for October 13th 2022

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for October 13th 2021

Green: Increase from previous day

Red: Decrease from previous day

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Repeat of Larry Williams' video entitled "Up, up and away"

Up, Up & Away | Larry Williams Special Presentation (10.12.22) - YouTube

S&P 500 Momentum Barometers

The intermediate term Barometer added 6.80 to 17.60 yesterday. It remains Oversold. It also showed more evidence of recovering from a bottom.

The long term Barometer added 2.40 to 18.80 yesterday. It remains Oversold. It also showed more evidence of recovering from a bottom.

TSX Momentum Barometers

The intermediate term Barometer added 3.39 to 30.08 yesterday. It remains Oversold, but shows short term signs of recovery.

The long term Barometer added 2.54 to 26.27 yesterday. It remains Oversold, but shows short term signs of recovery.

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