Pre-opening Comments for Tuesday October 3rd
U.S. equity index futures were lower this morning. S&P 500 futures were down 23 points at 8:30 AM EDT.
Point Biopharma jumped $5.67 to $12.35 after Eli Lilly offered to purchase the company at $12.50 per share. Value of the offer is $1.4 billion.
![clip_image001[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/10/clip_image0011.png "clip_image001[1]")
McCormick dropped $2.32 to $72.40 after reporting less than consensus fiscal third quarter earnings.
![clip_image002[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/10/clip_image0021-1.png "clip_image002[1]")
Apple slipped $1.15 to $172.60 after Citigroup removed the stock from its “Top Pick” list.
![clip_image003[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/10/clip_image0031.png "clip_image003[1]")
Nvidia added $1.05 $448.81 after KeyCorp raised its target price to $750.
![clip_image004[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/10/clip_image0041-1.png "clip_image004[1]")
EquityClock’s Daily Comment
Headline reads “Low volatility ETFs certainly not providing the refuge to mitigate the normal volatility at this time of year”.
https://equityclock.com/2023/10/02/stock-market-outlook-for-october-3-2023/
Technical Notes
Broadly based Canadian and U.S. indices and related ETFs have dropped to a level where their return this year is virtually nil. TSX Composite Index currently at 19,177.18 was at 19,384.92 on December 31st. S&P 500 Equal Weight ETF currently at $140.07 was at $140.54 on December 31st
Australia iShares $EWA moved below $21.18 extending an intermediate downtrend.
Copper miners ETF $COPX moved below $35.48 setting an intermediate downtrend.
U.S. REITs iShares $IYR moved below $76.86 extending an intermediate downtrend.
NASDAQ Biotech iShares $IBB moved below $120.50 extending an intermediate downtrend
Dow Jones Industrial Average stocks moving intermediate support included
MMM $MMM on a move below $91.02 to a 10 year low, JP Morgan $JPM on a move below $142.65 and Honeywell $HON on a move below $183.23 and $182.27.
S&P 100 stocks moving below intermediate support included General Electric $GE on amove below $109.94 completing a double top pattern, Danaher $DHR on a move below $242.96, Wells Fargo $WFC on a move below $40.30 and Duke Energy $DUK on a move below $86.04
TSX 60 stocks moving below intermediate support included Brookfield Infrastructure $BIP on a move below US$29.03 to a three year low, Enbridge $ENB.TO on a move below Cdn$44.86 to an 18 month low extending an intermediate downtrend and Telus $T.TO on a move below Cdn$21.93.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for Oct.2nd 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 October 2nd 2023
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for October 2nd 2023
Green: Increase from previous day
Red: Decrease from previous day
Links offered by valued providers
This is the ONLY Sector Showing STRENGTH Right Now | DecisionPoint Trading Room (10.02.23)
This is the ONLY Sector Showing STRENGTH Right Now | DecisionPoint Trading Room (10.02.23) – YouTube
This is Why You Need to BE VERY CAREFUL Where You Invest Right Now! | Your Daily Five (10.02.23)
Ed Yardeni expects 2024 to be a strong growth year
Ed Yardeni expects 2024 to be a strong growth year – YouTube
The Final Bar with David Keller, CMT | 4pm ET, 1pm PT | Oct. 2nd, 2023
The Final Bar with David Keller, CMT | 4pm ET, 1pm PT | Oct. 2nd, 2023 – YouTube
S&P 500 Momentum Barometers
The intermediate term Barometer dropped 3.20 to 12.20. It remains Oversold. Daily downtrend was extended.
The long term Barometer dropped 1.40 to 39.20. It changed from Neutral to Oversold on a drop below 40.00. Daily downtrend was extended.
TSX Momentum Barometers
The intermediate term Barometer dropped 5.29 to 16.30. It remains Oversold. Daily downtrend was extended.
The long term Barometer dropped 4.41 to 31.72. It remains Oversold. 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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October 3rd, 2023 at 2:29 pm
The $SPX continues to sell off,recently breaking below the August low support along with breaking below the uptrendline from October 2022. Price is now approaching 4200 support and is oversold. A break below 4200 would suggest much lower prices all the way down to the March low of 3800. A dead cat bounce from here would be a chance to exit.
https://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=2&mn=0&dy=0&id=p72746994613&a=1039537764
October 3rd, 2023 at 2:39 pm
The percentage of stocks above their 200 day moving average has broken down below previous lows. Definitely not a good sign.That is usually the last line of support.
https://stockcharts.com/h-sc/ui?s=%24SPXA200R&p=D&yr=2&mn=0&dy=0&id=p76784189616&a=904422671
October 3rd, 2023 at 2:58 pm
And here is the percentage of stocks above their 50 day moving average with the $SPX overlaid. Very bearish but approaching support that must hold or a new word for ugly will need to be made.
https://stockcharts.com/h-sc/ui?s=%24SPXA50R&p=D&yr=2&mn=0&dy=0&id=p43506753179&a=807961654