Pre-opening Comments for Friday January 5th
U.S. equity index futures were lower this morning. S&P 500 futures were down 23 points at 8:35 AM EST.
Index futures dropped 13 points following release of the U.S. December employment report at 8:30 AM EST. December Non-farm Payrolls were expected to drop to 158,000 from a revised 173,000 in November. Actual was an increase to 216,000. December Unemployment Rate was expected to increase to 3.8% from 3.7% in November. Actual was unchanged at 3.7%. December Average Hourly Earnings were expected to increase 0.3% versus a gain of 0.4% in November. Actual was an increase of 0.4%.
The Canadian Dollar dropped 0.14 to US74.74 cents following release of the December Canadian Employment Change report at 8:30 AM EST. Consensus was an increase of 13,200 versus a gain of 24,900 in November. Actual was an increase of 1,000. Consensus for December Unemployment Rate was an increase to 5.9% from 5.8% in November. Actual was unchanged at 5.8%.
Costco advanced $5.85 to $654.70 after reporting a revenue jump in December of nearly 10%.
Palantir Technologies dropped $0.63 to $15.62 after Jefferies downgraded the stock from Hold to Underperform.
IBM dropped $1.50 to $159.36 after Societe Generale downgraded the stock from Hold to Sell.
Technical Notes
Healthcare SPDRs XLV moved above $139.34 to an all-time high extending an intermediate uptrend.
Eli Lilly $LLY an S&P 100 stock moved above $628.81 to an all-time high extending an intermediate uptrend
Merck $MRK a Dow Jones Industrial Average stock moved above $117.20 to an all-time high extending an intermediate uptrend.
Trip.com $TCOM a NASDAQ 100 stock moved above intermediate resistance at $36.71.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for Jan.4th 2024
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 Jan 4th 2024
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for Jan.4th 2024
Green: Increase from previous day
Red: Decrease from previous day
Links offered by valued providers
Strange Divergence Between Interest Rates & Financials | Trading Places (01.04.24)
https://www.youtube.com/watch?v=fBaPEdKjZYY&t=4s
Discover The Hottest Sectors Of 2024! | Stock Talk (01.04.24): Joe Rabil
https://www.youtube.com/watch?v=nbOhcbJRWis&t=254s
Carter Charts the S&P 500 | Stock Trading & Investing Live Stream
https://www.youtube.com/watch?v=X2RvdsayxGo
What a Year for Uranium and Nuclear Energy!
Sprott Outlook: What a Year for Uranium and Nuclear Energy
S&P 500 Momentum Barometers
The intermediate term Barometer dropped 2.60 to 89.00. It remains Overbought. Daily data has rolled over.
The long term Barometer dropped 1.60 to 76.40. It remains Overbought. Daily data has rolled over.
TSX Momentum Barometers
The intermediate term Barometer added 1.78 to 68.44. It remains Overbought.
The long term Barometer added 1.33 to 58.67. It remains Overbought.
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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January 6th, 2024 at 1:53 am
The $SPX double topped at the late 2021 high. Price needs to “clear and hold” above this level to suggest higher prices. This Index is outperforming the Nasdaq as well.
https://stockcharts.com/h-sc/ui?s=%24SPX&p=W&yr=20&mn=0&dy=0&id=p79307810961&a=673066405
January 7th, 2024 at 2:21 pm
Ron/BC
Good observation. If I could add anything, is that the MACD has recently formed a “pinch point” above the signal line. MACD pinch points like this can be a bullish indicator – no guarantees of course. The Modified MACD(50,200,10) also in a nice uptrend.
https://schrts.co/yaxEeibD
January 7th, 2024 at 2:29 pm
My chart did not copy correctly. The chart was on a monthly time frame and it does not appear to be supported by the link function. However, if you plot $SPX as a monthly chart, you will see the pinch point I am referring to on the MACD for the month of October 2023.
January 8th, 2024 at 12:50 am
FishFat
The MOdified MACD is at resistance and I wouldn’t bet the SPX will clear price resistance of 4800 anytime soon. A pullback would be more likely now than a rally. But we’ll see what transpires next……………….