Pre-opening Comments for Thursday May 22nd
U.S. equity index futures were lower this morning. S&P 500 futures were down 31 points at 8:30 AM EDT.
Snowflake advanced $13.00 to $192.29 after reporting higher than consensus first quarter results.
![clip_image001[4]](https://timingthemarket.ca/techtalk/wp-content/uploads/2025/05/clip_image0014-2.png "clip_image001[4]")
Urban Outfitters added $2.99 to $62.59 after reporting higher than consensus first quarter revenues and earnings.
![clip_image002[4]](https://timingthemarket.ca/techtalk/wp-content/uploads/2025/05/clip_image0024-2.png "clip_image002[4]")
Zoom gained $2.43 to $84.70 after reporting higher than consensus first quarter revenues and earnings.
![clip_image003[4]](https://timingthemarket.ca/techtalk/wp-content/uploads/2025/05/clip_image0034-2.png "clip_image003[4]")
Toronto Dominion Bank is expected to open higher after reporting higher than consensus fiscal second quarter earnings.
![clip_image004[4]](https://timingthemarket.ca/techtalk/wp-content/uploads/2025/05/clip_image0044.png "clip_image004[4]")
EquityClock’s Market Outlook for May 22nd
S&P 500 Index reacting to the band of resistance that overhangs the market around all-time highs; next up is a test of the open gap charted on May 12. See:
https://equityclock.com/2025/05/21/stock-market-outlook-for-may-22-2025/
Technical Notes
Two events happened yesterday afternoon: Long term U.S. Treasury bond prices $TLT broke support at $84.65 after a lackluster auction of 20 year Treasuries and after Congress failed to pass the “One Big Budget Bill” prior to the Memorial Day holiday break. Note: The House of Representatives approved the bill early this morning. U.S. equity prices also quickly moved lower following the news.
Bitcoin in U.S. Dollars $BTCUSD briefly moved above $109,340,211 to an all-time high in early trading extending an intermediate uptrend, but moved lower following the two events mentioned above.
Palladium ETN $PALL moved above $93.50 resuming an intermediate uptrend.
ARC Resources $ARX.TO one of Canada’s largest natural gas producers moved above Cdn$29.70 to an all-time high extending an intermediate uptrend.
Kraft Heinz $KHC an S&P 100 stock moved below $26.90 to a four year low extending an intermediate downtrend.
Traders Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for May 21st 2025
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 May 21st 2025
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for May 21st 2025
Green: Increase from previous day
Red: Decrease from previous day
Links offered by valued providers
S&P 500, Bitcoin & XLK: What the Charts Are Saying Now: Frank Cappelleri
S&P 500, Bitcoin & XLK: What the Charts Are Saying Now – YouTube
Stocks Fall, Yields Spike: Now What? Guy Adami and Dan Nathan
Stocks Fall, Yields Spike: Now What? – YouTube
The bond market is in the driver seat for the equity market, says Charles Schwab’s Liz Ann Sonders
S&P 500 Momentum Barometers
The intermediate term Barometer plunged 12.60 to 66.60. It remains Overbought. Daily downtrend has been initiated
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The long term Barometer dropped 6.20 to 50.00. It remains Neutral. Daily downtrend likely initiated.
The short term (20 days) Barometer plunged 23.20 to 62.80. It remains Overbought. Daily downtrend has been initiates.
TSX Momentum Barometers
The intermediate term Barometer dropped 3.31 to 80.65. It remains Overbought.
The long term Barometer dropped 2.76 to 66.82. 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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May 22nd, 2025 at 10:42 am
Just a follow up to yesterday’s comments on Cdn banks, I was reading a CIBC bank preview note that was warning of rising PCLs and bad Cdn economic outlook, but TD had pretty good #s despite setting aside $300mln more in PCLs y/y and a new 52wk High today.
We’ll see how the others do next week. May 27 for BNS, May 28 for BMO and NA, and May 29 for RY and CM.
May 22nd, 2025 at 5:21 pm
Neil On
Thanks for your comment. Yes, TD’s #s were good in spite of everything and I imagine that all the Cdn banks #s will be good but TD is quite overbought and I expect that the banks will likely pull back on any bad economic news and then present a better buying opportunity. At least, that is what I am hoping for. I don’t like to buy at new highs. And I don’t believe it will be all sunshine and roses from here on in. Of course, I don’t want the economic news to be too bad.
May 22nd, 2025 at 6:08 pm
TD – BMO puts $95 PT and NA puts $98. The results were not blockbuster. Expectations were very low for Q2 earnings at 1.77. Earnings were down at 1.97 compared to 2.04 from a year ago.
I have underestimated the strength of this market. It refused to go down today after yesterday’s decline from overbought levels. It feels like there is money waiting to go in on any drop and for SPX the 200day MA should be solid support. What do I know? This environment is hard for me to decipher.
May 22nd, 2025 at 6:57 pm
Larry,what do any of us really know? Even the so-called experts are frequently wrong. I think it was Yogi Berra who said “It’s hard to know what’s going to happen”.