Pre-opening Comments for Thursday July 25th
U.S. equity index futures were lower this morning. S&P 500 futures were down 7 points at 8:35 AM EDT.
S&P 500 recovered 7 points following release of first reading of second quarter annualized real GDP at 8:30 AM EDT. Consensus was a 2.0% increase, up from a gain of 1.4% in the first quarter. Actual was an increase of 2.8%
ServiceNow added $42.13 to $773.00 after reporting higher than consensus second quarter results.
![clip_image001[5]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/07/clip_image0015-2.png "clip_image001[5]")
IBM advanced $4.26 to $188.28 after reporting higher than consensus second quarter results.
![clip_image002[5]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/07/clip_image0025-4.png "clip_image002[5]")
Ford dropped $1.61 to $12.06 after reporting less than consensus second quarter results.
![clip_image003[5]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/07/clip_image0035-2.png "clip_image003[5]")
Newmont added $0.35 to $48.05 after reporting higher than consensus second quarter results.
![clip_image004[5]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/07/clip_image0045-4.png "clip_image004[5]")
Equity Clock – Market Outlook for July 25, 2024
An important gauge of risk sentiment is starting to shift out of the bullish trend that it has been in since 2022 as risk aversion grips the market. See:
https://equityclock.com/2024/07/24/stock-market-outlook-for-july-25-2024/
Technical Notes
U.S. utility stocks and related ETFs (e.g. XLU) were notably higher despite higher long term interest rates. Excel Energy $XEL moved above $56.22 extending an intermediate uptrend.
General Motors $GM an S&P 100 stock moved below intermediate support at $$45.30 despite reporting higher than consensus second quarter earnings.
Lithium ETN $LIT moved below $38.57 to a four year low extending an intermediate downtrend.
Cdn. REIT iShares $XRE.TO moved above Cdn$16.19 setting an intermediate uptrend.
Fortis $FTS.TO a TSX 60 stock moved above Cdn$56.19 to a 16 month high extending an intermediate uptrend.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for July 24th 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 24th 2024
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for July 24th 2024
Green: Increase from previous day
Red: Decrease from previous day
Links offered by a valued provider
Big Cap Tech Wreck Drags Market: Dan Nathan, Guy Adami and Liz Young
https://www.youtube.com/watch?v=IAYNOWxh_jA
S&P 500 Momentum Barometers
The intermediate term Barometer plunged 8.60 to 59.20. It changed from Overbought to Neutral on a drop below 60.00. Daily trend has turned down.
The long term Barometer slipped 0.40 to 72.60. It remains Overbought. Daily trend has turned down.
TSX Momentum Barometers
The intermediate term Barometer dropped 6.64 to 68.14. It remains Overbought. Daily trend has turned down.
The long term Barometer slipped 1.77 to 80.97. 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 25th, 2024 at 10:15 am
I listened to two points Jim Cramer made this morning. 1. “The market is still overbought.” 2. A July Fed rate cut would be disastrous for the market. The market would interpret a July rate cut as an indication that the US economy is worse than thought and that a greater slowdown is coming thus negatively impacting earnings. The FOMC meets July 30-31. I don’t have any desire to be in this market until we clear that up on Wednesday and not until we get a real correction much lower.
July 25th, 2024 at 12:48 pm
Larry
Can’t argue there. My favourite expression is “BETTER PARANOID THAN NAIEVE.”
July 25th, 2024 at 1:20 pm
Paula
Here is TECK/b.to again with your XBM.to overlaid. Note Teck/b is still holding support at the $62 area but XBM.to has broken down from it’s support. Volume is too low to hold support. It looks like the 200ema is serving as support for Teck as well but has never in the past respected that line.
https://schrts.co/nAxWuzJm
July 25th, 2024 at 1:38 pm
The XIU.to is still holding at it’s breakout point support of $34.
https://schrts.co/JkDUaYtT
July 25th, 2024 at 1:51 pm
The U.S. S&P ETF on the TSX: XSP.to is testing price support at $81. This is also the uptrendline from last November plus the 50ema. No damage done to this ETF……..yet………
https://schrts.co/xmVQyXZM
July 25th, 2024 at 2:20 pm
#5 should read ZSP.to. with the XSP.to overlaid in pink……………
July 25th, 2024 at 4:21 pm
Ron/BC
RE #3: Thanks for the update. TECK is holding support, as you say, but XBM.TO had a meagre bounce at its 200EMA with the red (-DM) still rising, so it is still in a downtrend with an ominous looking head and shoulders pattern. Still waiting for a better buying opportunity.
https://schrts.co/IUqyQCYZ