Tech Talk for Friday January 8th 2020

U.S. equity index futures were higher this morning. S&P 500 futures were up 14 points in pre-opening trade.

Index futures were virtually unchanged following release of the December Employment Report at 8:30 AM EST. Consensus for December Non-farm Payrolls was s gain of 71,000 from an upwardly revised gain of 336,000 in November. Actual was a drop of 140,000. Consensus for the December Unemployment Rate was an increase to 6.8% from 6.7% in November. Actual was unchanged at 6.7%. Consensus for December Average Hourly Earnings was an increase of 0.2% versus a gain of 0.3% in November. Actual was an increase of 0.8%..

The Canadian Dollar was virtually unchanged at US 78.73 cents following release of Canada's December Employment Report at 8:30 AM EST. Consensus for December Employment was a drop of 27,500 versus a gain of 62,100 in November. Actual was a drop of 62,100. Consensus for the December Unemployment Rate was an increase to 8.6% from 8.5% in November. Actual was an increase to 8.6%.

Domtar added $1.24 to US $35.81 after announcing the sale of its personal care business to American Industrial Partners for US $920 million.

Chevron (CVX $90.22) is expected to open higher after Piper Sandler upgraded the stock from Neutral to Overweight.

Microsoft (MSFT $) is expected to open higher after Oppenheimer chose the stock as a "Top Pick for 2021"

Facebook (FB $) is expected to open higher after Mizuho chose the stock as a "Top Pick for 2021"

EquityClock's Daily Comment

Lead comment says," Mission accomplished!  Our target for the S&P 500 Index of 3800 that we have been proposing for months has been achieved".

Following is a link:

http://www.equityclock.com/2021/01/07/stock-market-outlook-for-january-8-2021/

Note seasonality chart on Non-farm Payrolls.

Technical Notes for Thursday January 7th

TSX Composite Index moved above 17,970.51 to an all-time high extending an intermediate uptrend.

Long term Treasury Bond ETF (TLT) moved below $152.00 completing a double top pattern.

Base Metals ETN (DBB) moved above $17.95 extending an intermediate uptrend.

Energy SPDRs (XLE) moved above $41.52 extending an intermediate uptrend.

U.S. Telecom iShares (IYZ) moved above $31.05 to a four year high extending an intermediate uptrend.

Wells Fargo, an S&P 100 stock moved above $33.60 extending an intermediate uptrend.

MMM (MMM), a Dow Jones Industrial Average stock moved below $169.18 completing a double top pattern.

American Express (AXP), a Dow Jones Industrial Average stock moved above $124.88 extending an intermediate uptrend. Note late weakness on negative news

Walgreens Boots (WBA), a Dow Jones Industrial Average stock moved above $44.34 extending an inverse Head & Shoulders pattern.

Microchip Technology (MCHP), a NASDAQ 100 stock moved above $145.34 to an all-time high extending an intermediate uptrend.

CSX (CSX), a NASDAQ 100 stock moved above $93.44 to an all-time high extending an intermediate uptrend.

Dollar Tree (DLTR), a NASDAQ 100 stock moved above $114.32 extending an intermediate uptrend.

Bank of Montreal (BMO), a TSX 60 stock moved above $98.62 extending an intermediate uptrend.

Fortis (FTS), a TSX 60 stock moved below $51.10 extending an intermediate downtrend.

Restaurant Brands International (QSR), a TSX 60 stock moved above $79.33 resuming an intermediate uptrend.

Trader's Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for January 7th 2021

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for January 7th 2021

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for January 7th 2021

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer added 1.00 to 83.37 yesterday. It remains extremely intermediate overbought.

TSX Momentum Barometer

The Barometer slipped 1.80 to 76.19 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