Tech Talk for Thursday July 19th 2018

U.S. equity index futures were lower this morning. S&P 500 futures were down 9 points in pre-opening trade.

Index futures were virtually unchanged following release of economic news at 8:30 AM EDT. Consensus for Weekly Jobless Claims was an increase to 222,000 from 215,000 last week. Actual was 207,000. Consensus for the July Philly Fed Index was an increase to 22.0 from 19.9 in June. Actual was an increase to 25.7.

Travelers dropped $5.00 to$125.00 after reporting lower than consensus second quarter earnings.

IBM added $2.98 to $147.50 after reporting higher than consensus second quarter sales and earnings.

American Express dropped $2.03 to $99.95 after lowering its third quarter guidance.

eBay dropped $3.15 to $34.80 after lowering its third quarter guidance. Seven U.S. brokers lowered their target price on the stock.

Philip Morris fell $3.97 to $78.18 after lowering its third quarter guidance.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/07/18/stock-market-outlook-for-july-19-2018/

Note seasonality charts on U.S. Housing Starts, Crude Oil Days of Supply, Gasoline Days of Supply and Crude Oil.

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Changes in seasonality ratings for equity markets at this time of year

Most equity markets in the world (exceptions: Brazil and India) have a history of turning negative after July 18th when second quarter earnings report season approaches its peak. Their weakness often is related to increasing volatility into mid-October. What about this year? Most equity markets currently are intermediate overbought and are vulnerable to an "outside event" (e.g. failure to negotiate trade tariffs). Watch the VIX Index as a leading indicator. The following seasonality charts show history of the VIX Index and major equity markets (and their related ETFs) during the past 20 years.

StockTwits Released Yesterday @EquityClock

Barrick Gold $ABX.CA $ABX, a TSX 60 stock moved below $16.58 setting an intermediate downtrend.

Technical action by S&P 500 stocks to 10:00: Bullish. Intermediate breakouts: $ABT $CSX $GWW $UAL $PPG. Breakdown: $HP

Editor's Note: After 10:00 AM EDT, breakouts included ORLY, NTRS, ICE, AXP and JEC. Breakdowns: TSN, CVX $TXT

Chevron $CVX, a Dow Jones Industrial stock moved below $120.06 completing a double top pattern.

Norbord $OSB.CA moved below $52.15 completing a double top pattern.

US Production of #Oil jumps to another record at 11 million barrels per day, up 12.5% year-to-date. $USO $CL_F $XLE

US #Housing Starts fall 9.9% (NSA) in June, a significant divergence compared to 2.3% increase that is average for month. $MACRO #Economy

American Express $AXP, a Dow Jones Industrial stock moved above $102.87 to an all-time high extending an intermediate uptrend.

Trader's Corner

Daily Seasonal/Technical Equity Trends for July 18th 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Commodities Trends for July 18th 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Sector Trends for July 18th 2018

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer added 3.20 to 67.40 yesterday. It remains intermediate overbought.

TSX Momentum Barometer

The Barometer slipped 0.83 to 63.33 yesterday. It remains intermediate overbought and showing early signs of rolling over.

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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