Tech Talk for Wednesday August 19th 2020

U.S. equity index futures were mixed this morning. S&P 500 futures were unchanged in pre-opening trade. Traders were waiting for an announcement on interest rates at 2:00 PM EDT by the Federal Reserve

The Canadian Dollar slipped 0.05 at US76.02 cents following release of Canada's July Consumer Price Index at 8:30 AM EDT. Consensus was an increase of 0.4% versus a gain of 0.8% in June. Actual was an increase of 0.1%.

Target gained $12.32 to an all-time high at $149.20 after reporting higher than consensus second quarter revenues and earnings.

Lowes advanced $2.09 to an all-time high at $160.00 after reporting higher than consensus second quarter revenues and earnings.

Momenta Pharmaceutical (MNTA $30.81) is expected to open near $52.50 after Johnson & Johnson offered to purchase the company at $52.50 per share. Value of the offer is $6.5 billion.

Darden Restaurants slipped $0.53 to $82.30 after Stifel Nicolaus downgraded the stock from Buy to Hold.

EquityClock's Daily Comment

Following is a link:

http://www.equityclock.com/2020/08/18/stock-market-outlook-for-august-19-2020/

Note seasonality chart on U.S. Housing Starts

Technical Notes for August 18th

S&P 500 Index moved above 3393.52 to an all-time inter-day high extending an intermediate uptrend. It also closed at an all-time closing high.

U.S. equity indices and related ETFs are responding to weakness in the U.S. Dollar and corresponding gains by U.S. companies with international operations. Revenues and earnings from international subsidiaries are adjusted higher when their currencies are translated into U.S. Dollars. The U.S. Dollar Index and its related ETN dropped to a 28 month low yesterday. From their peak from the third week in March, the U.S. Dollar Index has plunged 11.0% and its ETN has dropped 13%.

Conversely, the Canadian Dollar has advanced 11% since the third week in March.

The CRB Index and its related ETN have jumped 49% since the third week in April

Frontier iShares (FM) moved above $24.69 extending an intermediate uptrend.

JD Inc. (JD), a NASDAQ 100 stock moved above $69.18 to an all-time high extending an intermediate uptrend.

Moderna (MRNA), a NASDAQ 100 stock moved below $66.54 setting an intermediate downtrend.

Trader's Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for August 18th 2020

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Seasonal/Technical Commodities Trends for August 18th 2020

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for August 18th 2020

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer slipped 1.60 to 76.15 yesterday. It remains intermediate overbought.

TSX Momentum Barometer

The Barometer added 2.00 to 81.43 yesterday. It changed from intermediate overbought to extremely intermediate overbought on a move above 80.00.

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

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