Tech Talk for Wednesday May 16th 2018

U.S. equity index futures were mixed this morning. S&P 500 futures were unchanged in pre-opening trade.

Index futures were virtually unchanged following release of April Housing Starts at 8:30 AM EDT. Consensus was a slip to 1.307 million units from 1.319 million units in March. Actual was 1.287 million units.

Macy's soared $2.74 to $32.67 after releasing stronger than consensus first quarter sales and earnings. The company also raised its guidance.

Micron gained $1.10 to $55.11 after RBC Capital initiated coverage with an Outperform rating.

Advanced Micro Devices added $0.20 to $12.65 after Susquehanna raised its target price to $11 from $8. The stock was upgraded to Neutral from Underperform.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/05/15/stock-market-outlook-for-may-16-2018/

Note seasonality charts on 10 Year Treasury Prices, U.S. Retail Trade, Business Sales, Business Inventories and Empire State Manufacturing Survey.

Upcoming BNN Appearance:

Jon Vialoux will be on BNN's Market Call Tonight at 6:00pm ET this Friday, May 18th taking your calls on Technical Analysis and Seasonal Investing.  CALL TOLL-FREE 1-855-326-6266,  EMAIL marketcall@bnnbloomberg.ca,  or TWEET @MarketCall  Be sure to send in your video questions for priority response on air.

Observations

The move by U.S. 10 year Treasury yields above 3.034% triggered several short term trends:

Bond prices and related ETFs moved lower

Interest sensitive sectors including REITs and Home Builders were notably weaker

The U.S. Dollar Index and its related ETF moved to new recent highs.

Precious metal prices and related ETFs moved lower

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:30: Bearish. Intermediate breakouts: $FITB $NAVI. Breakdowns: $DHI $MO $A $PPL $IRM

Editor's Note: After 10:30 AM EDT, breakouts included HBAN, NOV and PBCT. Breakdowns included MAC and ESS.

Yield on 10 year Treasuries at 3.05% moves above 3.036% to a 7 year high extending a 7 year high.

BMO Equal Weight Bank ETF $ZEB.CA moved above $29.63 prior to release of fiscal Q2 results setting intermediate uptrend.

#Business #Sales running 0.8% above average through first quarter #Inventories 0.5% above average #Economy $MACRO $STUDY

Empire Manufacturing Survey printing 28.1 (NSA) in May, firmly above 18.5 that is average for the month. #Manufacturing #Economy $MACRO

U.S. Retail Traded down 5.2% (NSA) in April, much more than average decline for month of 1.7% #Economy #MACRO $XRT

Home construction ETF $ITB moved below $37.72 extending an intermediate downtrend. Also breakdowns by $LEN and $DHI. Higher mortgage rates?

'Tis the season to avoid the U.S. Homebuilding sector! $ITB

Trader's Corner

Daily Seasonal/Technical Equity Trends for May 15th 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Commodities Trends for May 15th 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Sector Trends for May 15th 2018

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer dropped 7.00 to 55.40 yesterday. It fell from an intermediate overbought level to an intermediate neutral level. Early signs of a short term peak have appeared.

TSX Momentum Barometer

The Barometer slipped 2.18 to 67.49 yesterday. It remains intermediate overbought. Early signs of a short term peak have appeared.

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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