Tech Talk for Thursday May 28th 2020

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

Index futures were virtually unchanged following release of economic news at 8:30 AM EDT. Consensus for April Durable Goods Orders was a drop of 19.0% versus a decline of 16.6% in March. Actual was a drop of 17.2%. Excluding Transportation Orders, April Durable Goods Orders was a drop of 14.0% versus a decline of 1.7% in March. Actual was a decline of 7.4%. Consensus for next estimate of U.S. first quarter GDP was a drop of 4.8% versus a gain of 2.1% in the fourth quarter. Actual was a decline of 5.0%. Consensus for Weekly Jobless Claims was a drop of 2.10 million versus a drop of 2.426 million last week. Actual was a drop of 2.123 million.

Boeing gained $11.05 to $160.61 after announcing plans to resume production of its 737 Max aircraft.

HP Inc dropped $1.25 to $15.87 after reporting lower than consensus second quarter revenues. In addition, JP Morgan downgraded the stock from Overweight to Neutral

Canadian Imperial Bank of Commerce (CM $91.80) is expected to open lower after reporting lower than consensus fiscal second quarter earnings.

Toll Brothers jumped $3.00 to $36.00 after reporting higher than consensus fiscal second quarter earnings.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2020/05/27/stock-market-outlook-for-may-28-2020/

Note seasonality charts on the U.S. Financial Sector and the NASDAQ 100 Index relative to the S&P 500 Index.

Technical Notes

TSX Composite Index closed above 15,257.93 extending an intermediate uptrend. S&P/TSX 60 also broke out with a move above 922.18. Related ETF (XIU) broke out on a move above $23.11.

More S&P 100 and Dow Jones Industrial stocks moved above recent trading ranges setting intermediate uptrends: Marriot, Exxon Mobil, American Express, Bank of America, Bank of New York Mellon, Citigroup, Capital One, Lowe's MetLife, Honeywell, AT&T

Breakouts were dominated by U.S. based financial stocks and related ETF: XLF KBE KRE

Another NASDAQ 100 stock moved above recent trading ranges setting intermediate

up trends: PAYX

Italy iShares (EWI) moved above $21.69 completing a base building pattern and setting an intermediate uptrend.

Steel ETF (SLX) moved above $25.39 setting an intermediate uptrend.

Aerospace and Defense ETF (PPA) moved above $56.13 extending an intermediate uptrend. Ditto for ITA on a move above $161.52,

Forest Product iShares (WOOD) moved above $54.42 extending an intermediate uptrend.

Agribusiness ETF trading in Canada (COW.TO) moved above $36.04 extending an intermediate uptrend.

Canadian Equally Weighted Banks ETF (ZEB.TO) moved above $23.75 completing a base building pattern and setting an intermediate uptrend.

TSX Financial iShares (XFN.TO) moved above $32.51 completing a base building pattern and setting an intermediate uptrend.

Breakouts by Canadian Bank ETFs were triggered by breakouts by National Bank, Royal Bank and Toronto Dominion Bank, setting intermediate uptrends following release of fiscal second quarter results.

ManuLife Financial moved above $17.86 setting an intermediate uptrend.

Trader's Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for May 27th 2020

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Seasonal/Technical Commodities Trends for May 27th 2020

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for May 27th 2020

Green: Increase from previous day

Red: Decrease from previous day

Greg Schnell's "Market Buzz"

Greg discusses the "Dark Cloud of the NASDAQ 100". Following is a link:

https://www.youtube.com/watch?v=UWlhR_1sCJc&feature=youtu.be

S&P 500 Momentum Barometer

The Barometer gained another 3.61 to 94.19 yesterday. It remains extremely overbought, but has yet to show signs of an intermediate peak.

TSX Momentum Barometer

The Barometer added 0.45 to 89.73 yesterday. It remains extremely overbought, but has yet to show signs of an intermediate peak.

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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