Tech Talk for Thursday June 20th 2019

U.S. equity index futures were higher this morning. S&P 500 futures were up 28 points in pre-opening trade. Investors responded to expectations for lower interest rates by the Federal Reserve. Broadly based U.S. equity indices are testing their all-time highs.

Index futures were virtually unchanged following release of economic news at 8:30 AM EDT. Consensus for Weekly Initial Jobless Claims was 220,000 versus 222,000 last week. Actual was 216,000. Consensus for the June Philly Fed Index was 11.5 versus 16.6 in May. Actual was 0.3

The U.S. Dollar Index dropped 0.5% to 96.62 following the Federal Reserve's statement on lowering interest rates released late yesterday.

Drop in the U.S. Dollar Index triggered strength in the price of gold. Gold jumped $36.50 to $1385.10 per ounce to a five year high.

Oracle gained $1.92 to $54.60 after reporting higher than consensus fiscal fourth quarter sales and earnings.

Darden Restaurants (DRI $117.41) is expected to open higher after raising its dividend by 17%.

Carnival Cruise (CCL $52.84) is expected to open lower after lowering its full year guidance.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2019/06/19/stock-market-outlook-for-june-20-2019/

Responses to Fed News Released at 2:00 PM EDT Yesterday

As expected, the Federal Reserve maintained the Fed Fund rate at 2.50%. It also offered guidance implying lower rates at future meetings. Market responses were as follows:

U.S. equity indices moved slightly higher.

The U.S. Dollar Index and its related ETN moved lower

Long term U.S. Treasury Bonds moved higher.

Prices of gold and its related ETN moved higher.

StockTwits released yesterday @EquityClock

Canada CPI up 0.4% (NSA) in May, inline with the average increase for this time of year. $MACRO $FXC #CAD #CDNecon

Technical action by S&P 500 stocks to 10:00: No intermediate breakouts or breakdowns.

Editor's Note: After 10:00 AM EDT, intermediate breakouts included VIAB, ADBE, UNH, EL, HOLX, FMC, PFE, CNP, PSX, MCK and FLT. Breakdown: BK

UnitedHealth Group $UNH, a Dow Jones Industrial stock moved above $250.07 extending an intermediate uptrend.

AltaGas $ALA.CA moved above $19.76 extending an intermediate uptrend.

Pfizer $PFE, a Dow Jones Industrial stock moved above $43.40 extending an intermediate uptrend.

Observations

Notable stronger among equity sectors following release of the Federal Reserve's announcements were gold and health care. Nice intermediate breakouts by both!

Trader's Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for June 19th 2019

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for June 19th 2019

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for June 19th 2019

Green: Increase from previous day

Red: Decrease from previous day

Keith Richard's Blog

Keith asks, "Bearish signs"? See:

https://www.valuetrend.ca/bearish-signs/

S&P 500 Momentum Barometer

The Barometer slipped 0.60 yesterday to 63.63. It remains intermediate overbought.

TSX Momentum Barometer

The Barometer slipped 0.17 to 60.26 yesterday. It remains intermediate overbought.

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...