Pre-opening Comments for Wednesday September 27th
U.S. equity index futures were higher this morning. S&P 500 futures were up 16 points at 8:35 AM EDT.
Index futures added 3 points following release of August Durable Goods Orders at 8:30 AM EDT. Consensus was a 0.5% versus a drop of 5.2% in July. Actual was an increase of 0.2%.
Costco slipped $8.46 to $544.50 despite reporting higher than consensus fiscal fourth quarter revenues and earnings.
![clip_image001[5]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/09/clip_image0015-1.png "clip_image001[5]")
Cleveland Cliffs added $0.10 to $14.80 after announcing price hikes for selected steel products.
![clip_image002[5]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/09/clip_image0025-2.png "clip_image002[5]")
Nuvalent gained $0.17 to $42.25 after Stifel Nicolaus, Wedbush and JP Morgan initiated coverage with buy ratings.
![clip_image003[5]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/09/clip_image0035-1.png "clip_image003[5]")
EquityClock’s Daily Comment
Headline reads “The change in home prices across the country has become bifurcated as some regions battle greater cost of living burdens than others”.
https://equityclock.com/2023/09/26/stock-market-outlook-for-september-27-2023/
Technical Notes
Technology SPDRs $XLK moved below $162.59 extending an intermediate downtrend.
Weakness in the technology sector was triggered by intermediate technical breakdowns by the three largest companies in the sector: Apple moved below $171.96 completing a double top pattern. Amazon moved below $126.11 setting an intermediate downtrend. Microsoft moved below $311.55 extending an intermediate downtrend.
Financials SPDRs XLF moved below $33.42 completing a double top pattern.
South Korea iShares $EWY moved below $60.24 extending an intermediate downtrend.
Junior Gold ETF $GDXJ moved below $32.98 extending an intermediate downtrend.
Copper Miners ETF $COPX moved below $35.48 setting an intermediate downtrend.
TSX Capped REIT iShares $XRE.TO moved below Cdn$15.10 extending an intermediate downtrend.
S&P 100 stocks moving below support setting intermediate downtrends included General Electric, Comcast, Philip Morris International and Texas Instruments
NASDAQ 100 stocks moving below intermediate support extending a downtrend included Adobe, Applied Materials and O’Reilly Automotive.
TSX 60 stocks moving below support setting an intermediate downtrend included
Royal Bank on a move below Cdn$118.87, National Bank on a move below Cdn$89.88 and Cdn$89.94, Canadian Pacific on a move below Cdn$100.56 and Franco Nevada on a move below US$133.83.
Special Report: Seasonality of VIX Index
The VIX Index has s history of moving higher from mid-September to mid-October
The Index is closely following its historic pattern this year.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for September 26th 2023
Green: Increase from previous day
Red: Decrease from previous day
Source for all positive seasonality ratings: www.EquityClock.com
Commodities
Daily Seasonal/Technical Commodities Trends for September 26th 2023
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for September 26th 2023
Green: Increase from previous day
Red: Decrease from previous day
Links offered by valued providers
Pro-Nuclear Sentiment Ignites Uranium Opportunities
Special Report: Pro-Nuclear Sentiment Ignites Uranium Opportunities (sprottetfs.com)
S&P Tests MAJOR Support | Tom Bowley | Trading Places (09.26.23)
S&P Tests MAJOR Support | Tom Bowley | Trading Places (09.26.23) – YouTube
Sector Rotation Sends Mixed Signals | Sector Spotlight (09.26.23)
Sector Rotation Sends Mixed Signals | Sector Spotlight (09.26.23) – YouTube
Sector Rotation Sends Mixed Signals | Sector Spotlight (09.26.23) Jim Grant
S&P 500 Momentum Barometers
The intermediate term Barometer dropped 6.60 to 14.80. It remains Oversold. Daily downtrend was extended.
The long term Barometer dropped 5.20 to 39.80. It changed from Neutral to Oversold on a drop below 40.00. Daily downtrend was extended.
TSX Momentum Barometers
The intermediate term Barometer dropped 6.61 to 21.59. It remains Oversold. Daily downtrend was extended.
The long term Barometer dropped 4.85 to 36.12. It changed from Neutral to Oversold on a drop below 40.00. Daily downtrend was extended.
Disclaimer: Seasonality ratings 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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September 27th, 2023 at 9:43 am
SPX has more or less hit Equity Clock’s bottom support level it has been calling in the 4200-4260 range hitting 4266 on Monday. As far as a market catalyst is concerned it would be negotiations on the US debt ceiling with a government shut down possibly occurring by Sunday. This situation is nothing we haven’t seen before and inevitably there will be a deal. The extremists in the GOP are a little more concerning this time around.
Oil and gas continues to be the sector that outperforms with CNQ making a new USD high this morning. I will continue to bang the drum on that sector which is underowned and has had no shortage of naysayers though they tend to be muted now.
September 27th, 2023 at 10:29 am
IMO – New all-time high. MEG – New all-time high. ARX – New high going back to Jun 22 which it close to clearing.
September 27th, 2023 at 11:26 am
BCE – The drop is a fascinating example of a darling blue chip widows and orphans stock just getting hammered with investors left stunned not understanding what is happening. Bond proxies are just the worst place to be with rising rates. ENB is another. When you see bond yields turn lower these stocks will bottom. I was looking at BCE when it was around $55 and passed on it. Now down another 8%. It broke an important support level going all the way back to Q1 2020 at the 52.25 range which was tested Oct 22. The 40 year era of dropping interest rates died in 2020.