Tech Talk for Thursday May 3rd 2018

U.S. equity index futures were lower this morning. S&P 500 futures were down 7 point in pre-opening trade.

Index futures moved lower following release of economic news at 8:30 AM EDT. Consensus for first quarter Productivity was an increase of 1.0%. Actual was an increase of 0.7%. Consensus for Weekly Jobless Claims was an increase to 220,000 from 209,000 last week. Actual was 211,000. Consensus for March U.S. Trade Deficit was $50 billion versus revised $57.7 billion in February. Actual was $48.96 billion.

The Canadian Dollar dipped to 77.71 U.S. cents following release of Canada's March Merchandise Trade Deficit. Consensus was $2.0 billion versus $2.7 billion in February. Actual was $4.14 billion.

First quarter reports continue to pour in. Reports released since yesterday's close included American International Group, Avon Products, Blue Apron, Bombardier, Cardinal Health, Cigna, DowDupont, Express Scripts, Fitbit, Kellogg, KraftHeinz, New York Times, Square, Tesla and Teva.

MMM added $0.50 to $195.00 after RBC Capital upgraded the stock to Outperform from Sector Perform.

NVidia gained $2.05 to $228.36 after Barclays upgraded the stock to Overweight.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/05/02/stock-market-outlook-for-may-3-2018/

Note seasonality charts on the U.S. Dollar Index, Crude Oil days of supply, Gasoline days of supply and Crude Oil.

Observations

The Fed Fund rate announced at 2:00 PM EDT yesterday was unchanged. Responses by major markets were as follows:

U.S. Dollar Index initially moved lower, but closed higher.

Long term Treasury prices initially moved higher, but closed lower.

S&P 500 Index and Dow Jones Industrial Average initially moved higher, but closed lower.

The VIX Index spiked.

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Bearish. Breakouts: $CXO $JNPR $MA. Breakdowns: $PGR $UNM $ZTS $CHRW $SBAC $VRSK

Editor's Note: Breakouts after 10:00: UAA, GRMN. Breakdowns: LNC, BHF, K, TSN, FISV, MNST, JNJ, NLSN, PYPL, WYN and IP.

CGI Group $GIB $GIB.A.CA, a TSX 60 stock moved above $59.89 U.S. to an all-time high extending an intermediate uptrend.

Cineplex $CGX.CA, a TSX 60 stock moved below $28.74 extending an intermediate downtrend.

Maple Leaf Foods $MFI.CA moved below $30.17 extending an intermediate downtrend.

Air Canada $AC.CA moved below $30.17 extending an intermediate downtrend.

Celestica $CLS.CA $CLS moved above $15.00 Cdn. completing a base building pattern.

Uranium ETF $URA moved above $14.09 completing a base building pattern.

Crude #Oil Inventories up 6.2 million barrels last week, breaking stockpiles our a tight range $USD $CL_F $XLE

Johson & Johnson $JNJ, a Dow Jones Industrial stock moved below $123.54 setting an intermediate downtrend.

Eldorado Gold $ELD.CA $EGO moved above $1.30 Cdn. completing a bottoming pattern.

International Paper $IP moved below $50.04 extending an intermediate downtrend.

'Tis the season for weakness in International Paper $IP to the end of June.

Trader's Corner

Daily Seasonal/Technical Equity Trends for May 2nd 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Commodities Trends for May 2nd 2018

Green: Increase from previous day

Red: Decrease from previous day

* Excludes adjustment from rollover of futures contracts

Daily Seasonal/Technical Sector Trends for May 2nd 2018

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer dropped 5.60 to 40.40 yesterday. It remains intermediate neutral and trending down.

TSX Momentum Barometer

The Barometer added 1.38 to 65.84 yesterday. It remains intermediate overbought, but continues to trend higher.

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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