Pre-opening Comments for Thursday July 18th
U.S. equity index futures were higher this morning. S&P 500 futures were up 13 points at 8:35 AM EDT.
S&P 500 futures added 2 points following release of the July Philly Fed Index at 8:30 AM EDT. Consensus was an increase to 2.7 from 1.3 in June. Actual was 13.9.
Alcoa added $0.29 to $37.10 after second quarter revenues beat consensus estimates.
![clip_image001[5]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/07/clip_image0015-1.png "clip_image001[5]")
Kinder Morgan dropped $0.63 to $19.90 after second quarter revenues came in less than consensus.
![clip_image002[5]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/07/clip_image0025-2.png "clip_image002[5]")
Discover Financial added $6.59 to $148.00 after reporting higher than consensus second quarter revenues and earnings.
![clip_image003[5]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/07/clip_image0035-1.png "clip_image003[5]")
Domino’s Pizza Group dropped $54.30 to $418.97 after reporting less than consensus second quarter revenues.
![clip_image004[5]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/07/clip_image0045-2.png "clip_image004[5]")
Equity Clock – Market Outlook for July 18, 2024
A near-term retracement in the technology sector back towards levels of intermediate to long-term support may be underway.
https://equityclock.com/2024/07/17/stock-market-outlook-for-july-18-2024/
Technical Notes
Consumer Staples SPDRs $XLP moved above $78.81 to an all-time high extending an intermediate uptrend.
S&P 100 and NASDAQ 100 stocks moving above resistance extending intermediate uptrends included Comcast, US Bancorp, Gilead, Pfizer, UnitedHealth Group, Global Foundries, Johnson & Johnson, Bristol-Myers-Squibb, Colgate Palmolive, Pepsico and Lockheed Martin
Notably weaker were Semiconductor stocks and their related ETFs. Semiconductor ETF $SMH moved below intermediate support at $255.66. Individual equities breaking intermediate support included Broadcom $AVGO and KLA Inc $KLAC.
CCL Industries $CCL.B a TSX 60 stock moved above Cdn$73.89 to an all-time high extending an intermediate uptrend.
TC Energy $TRP.TO a TSX 60 stock moved above Cdn$54.08 extending an intermediate uptrend.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for July 17th 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 July 17th 2024
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for July 17th 2024
Green: Increase from previous day
Red: Decrease from previous day
Links Offered by Valued Providers
Dow Theory Bull confirmed! What happens next? David Keller
Dow Theory Bull Confirmed! What Happens Next? – YouTube
Greene: Global chip sell-off is a bend, not break, trade
Greene: Global chip sell-off is a bend, not break, trade – YouTube
Find Trades Using These POWERFUL MACD Combinations: Joe Rabil
Find Trades Using These POWERFUL MACD Combinations – YouTube
Fed’s Beige Book sees slowing growth, consumers adjusting for inflation
Fed’s Beige Book sees slowing growth, consumers adjusting for inflation – YouTube
BoC widely expected to cut rates: BNNBloomberg
BoC widely expected to cut rates – YouTube
Tech Tremors Spark Market Selloff: Guy Adami, Dan Nathan and Carter Worth
Tech Tremors Spark Market Selloff – YouTube
Chart of the Day
S&P 500 Momentum Barometers
The intermediate term Barometer slipped 0.60 to 76.20. It remains Overbought.
The long term Barometer added 0.80 to 80.40. It remains Overbought. Daily uptrend was extended.
TSX Momentum Barometers
The intermediate term Barometer dropped 1.77 to 80.09. It remains Overbought.
The long term Barometer slipped 0.44 to 81.86. 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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July 18th, 2024 at 11:15 am
The TD.to bank stock has reached a very,very overbought level. As always draw your own conclusions.
https://stockcharts.com/h-sc/ui?s=TD.TO&p=D&yr=2&mn=0&dy=0&id=p56622604997&a=683824460
July 18th, 2024 at 11:25 am
The Equal Weight Banks symbol ZEB.TO is also very overbought from it’s latest bounce back.
https://stockcharts.com/h-sc/ui?s=ZEB.TO&p=D&yr=2&mn=0&dy=0&id=p38188022781&a=1417044697
July 18th, 2024 at 4:00 pm
Ron/BC,
Thanks for the TD and ZEB charts. It does look very overbought, as you say. Here is an updated weekly chart which I posted a few days ago. The price has touched the pink down trendline and is backing off. There is still room on the RSI 8 before it gets overbought and the green +DI has crossed the red -DI with room for the green to move up before contacting the descending black ADX. (Shown by green circle). If this was a short-term trade off the recent low ~ 73, now would make sense to sell but if holding for a longer-term trade, there is still room up to the 84-86 level, IF, it can get over the pink down trendline. This could happen on an overall bounce in the market.
https://schrts.co/djRiIQtn
July 18th, 2024 at 8:10 pm
Paula
Thanks for the chart. Much to think about.
I should mention that when I used to talk to a broker all the time he said traders with deep pockets would short a stock like this and wouldn’t be concerned with price going much higher as they had the funds to stick to their positions while the rest of us would stop out for fear of losing too much money. They would just add to their short positions the higher it would go. Big difference between us……………Must be nice.
July 18th, 2024 at 8:21 pm
Paula
Here is your chart and I’ve changed the Weekly chart to use the RSI 6 up top and the RSI 4 below. I don’t think the RSI 8 works well with the Weekly charts.
https://stockcharts.com/h-sc/ui?s=TD.TO&p=W&yr=3&mn=0&dy=0&id=p05101976897&a=1730764432