Tech Talk for Wednesday June 1st 2022

U.S equity index futures were higher this morning. S&P 500 futures were up 17 points in pre-opening trade.

Investors are awaiting U.S. economic news to be released at 10:00 AM EDT. Consensus for April Construction Spending was an increase of 0.5% versus a gain of 0.1% in March. Consensus for the May Manufacturing ISM Purchasing Managers Index is a slip to 54.5 from 55.4 in April.

Investors also are awaiting release of the Beige Book at 2:00 PM EDT where discussion on interest rates by Federal Reserve members is revealed.

The Bank of Canada announces its interest rate decision at 10:00 AM EDT. Consensus is that the lending rate to major banks will increase by another 0.50 to 1.50%.

Salesforce.com $CRM a Dow Jones Industrial Average stock added $8.96 to $169.20 after reporting higher than consensus first quarter revenues and earnings. The company also offered positive second quarter guidance. On the charts the stock moved above $169.20 completing a short term double bottom pattern following release of news.

Hewlett Packard added $0.20 to $15.80 after reporting higher than consensus quarterly earnings.

Victoria's Secret dropped $1.46 to $41.21 after JP Morgan lowered its target price from $71 to $57.

EquityClock's Daily Comment

Headline reads "The S&P 500 Index has lost 0.4%, on average, in the month of June over the past two decades with gains more common than losses at a ratio of 3 to 2". Following is the link:

http://www.equityclock.com/2022/05/31/stock-market-outlook-for-june-1-2022/

Technical Notes for yesterday

India ETF $PIN moved above $23.99 completing a short term double bottom pattern.

South Korea iShares $EWY moved above intermediate resistance at $68.39.

Amazon $AMZN a NASDAQ 100 stock moved above $2316.60 completing a short term double bottom pattern.

Netflix $NFLX a NASDAQ 100 stock moved above $195.89 completing a short term reverse Head & Shoulders pattern.

FedEx $FDX moved above $222.51 completing a double bottom pattern.

U.S. Oil ETN $USO moved above $87.84 extending an intermediate uptrend.

ARC Resources $ARX.TO moved above $19.60 extending an intermediate uptrend.

Trader's Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for May 30th 2022

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for May 30th 2022

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for May 30th 2021

Green: Increase from previous day

Red: Decrease from previous day

All seasonality ratings are based on performance relative to the S&P 500 Index (except TSX)

Links from valued providers

El-Erian: The Fed is Going to Have to Decide Between Two Policy Mistakes

https://www.youtube.com/watch?v=-f68-0oA52c

S&P 500 Momentum Barometers

The intermediate term Barometer dropped 6.61 to 39.88 yesterday. It returned to Oversold on a drop below 40.00.

The long term Barometer slipped 1.40 to 37.27 yesterday. It remains Oversold.

TSX Momentum Barometers

The intermediate term Barometer slipped 1.32 to 32.60 yesterday. It remains Oversold.

The long term Barometer eased 3.08 to 38.77 yesterday. It returned to Oversold on a drop below 40.00.

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.