Pre-opening Comments for Friday August 23rd
U.S. equity index futures were higher this morning. S&P 500 futures were up 28 points at 8:30 AM EDT.
Federal Reserve Chairman is scheduled to speak at the Jackson Hole Symposium at 10:00 AM EDT. Look for guidance on the FOMC’s interest rate policy.
Intuit dropped $5.29 to $660.00 despite reporting higher quarterly results. The company also announced a round of layoffs.
![clip_image001[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/08/clip_image0011-12.png "clip_image001[1]")
Workday advanced $25.05 to $256.13 after the company offered a better than consensus outlook.
![clip_image002[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/08/clip_image0021-11.png "clip_image002[1]")
Ross Stores gained $8.60 to $161.12 after reporting higher than consensus second quarter earnings.
![clip_image003[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/08/clip_image0031-10.png "clip_image003[1]")
Cava advanced $9.19 to $111.17 after offering guidance above consensus.
![clip_image004[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/08/clip_image0041-8.png "clip_image004[1]")
EquityClock’s Stock Market Outlook for August 23rd
The outside reversal candlestick in the technology sector on Thursday threatens a short-term peak and an intermediate-term topping pattern as volatility starts ramping up again.
See:
https://equityclock.com/2024/08/22/stock-market-outlook-for-august-23-2024/
Technical Notes
The VIX Index is rising again, moving above its 50 day moving average.
Capped REIT S&P/TSE iShares $XRE.TO moved above Cdn$16.24 extending an intermediate uptrend.
Eli Lilly $LLY an S&P 100 stock moved above $964.72 to an all-time high extending an intermediate uptrend.
Meta Platform $META an S&P 100 stock moved above $542.81 to an all-time high extending an intermediate uptrend.
Zoom $ZM a NASDAQ 100 stock moved above $62.22 and $65.40 setting an intermediate uptrend. Responding to better than consensus quarterly results!
NetEase $NTES a NASDAQ 100 stock moved below $86.01 extending an intermediate downtrend.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for August 22nd 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 August 22nd 2024
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for August 22nd 2024
Green: Increase from previous day
Red: Decrease from previous day
Links offered by valued providers
Looking for the Next Entry Point in SPY? USE RSI!
Looking for the Next Entry Point in SPY? USE RSI! – YouTube
‘Risk Is Back on’ for Investors, Says CFRA’s Sam Stovall
‘Risk Is Back on’ for Investors, Says CFRA’s Sam Stovall – YouTube
How a rail strike could paralyze Canada’s economy | About That
How a rail strike could paralyze Canada’s economy | About That – YouTube
2 Best Healthcare Stocks for August 2024: David Keller
2 Best Healthcare Stocks for August 2024 – YouTube
Expect Market Volatility? Guy Adami, Dan Nathan and Carter Worth
Expect Market Volatility? – YouTube
S&P 500 Momentum Barometers
The intermediate term Barometer dropped 2.00 to 72.80. It remains Overbought.
The long term Barometer dropped 1.20 to 75.60. It remains Overbought.
TSX Momentum Barometers
The intermediate term Barometer dropped 5.31 to 64.60. It remains Overbought.
The long term Barometer added 0.44 to 74.78. 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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August 24th, 2024 at 5:57 pm
RE: XLF
Recall that we were recently talking about a possible triple top on XLF. I posted this chart showing multiple bearish divergences. My experiences with divergences are that they don’t usually mean anything and this is just another example of that. Perhaps it has to do with the long term uptrend, in this example.
https://schrts.co/DvtemibK
August 24th, 2024 at 6:25 pm
RE: XBI
I am back to this with a bullish cross of the +DI above the -DI and the ADX turning up from a low level. I have marked this on an old chart that Ron/BC posted in early July, I think. I added the ADX indicator and made my vertical lines green and Ron’s vertical lines blue. His show when the RSI(8) crosses back above the 30 after having been below it. Maybe he would have put in a blue vertical line a few days before my green line. I drew it in but since it was a double cross over, I am not sure if it is correct. There is obviously resistance at the overhead pink line. There could be a cup and handle pattern.
https://schrts.co/NJKIjzhf
August 25th, 2024 at 8:58 pm
Paula
I believe if you adjust the XLF RSI to 5, 6, and 8 it would show overbought, which if confirmed would be a further topping confirmation. Based on Ron’s comments and what I have been observing, the next move would be lower until oversold (sometime in Sept or Oct). I think we need 1 more washout before it has could potentially go higher. I am hearing more and more outlooks with a target of the S&P 500 at 3800-4400 into year end / 2025 so you want to confirm the oversold condition before putting money to work. At least that is my 2 cents.