Pre-opening Comments for Wednesday October 26th
U.S. equity index futures were lower this morning. S&P 500 futures were down 31 points in pre-opening trade.
Canadian focus today is on the Bank of Canada’s announcement at 10:00 AM EDT. Consensus is that the Bank of Canada will raise its lending rate to major Canadian banks by another 0.75% to 4.00%.
Alphabet $GOOGL dropped $5.00 to $99.56 after reporting less than consensus third quarter revenues and earnings.
![clip_image001[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/10/clip_image0011-9.png "clip_image001[1]")
Microsoft $MSFT dropped $5.91 to 244.75 despite reporting slightly higher than consensus fiscal first quarter earnings. Revenues from Azure and cloud were less than consensus. The company also lowered fiscal second quarter guidance.
![clip_image002[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/10/clip_image0021-8.png "clip_image002[1]")
Texas Instruments $TXN fell $8.16 to $154.00 after lowering fourth quarter guidance.
![clip_image003[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/10/clip_image0031-5.png "clip_image003[1]")
Visa $V added $1.25 to 195.63 after reporting higher than consensus third quarter revenues and earnings. The company also raised its dividend by 20%.
![clip_image004[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/10/clip_image0041-1.png "clip_image004[1]")
Chipotle $CMG initially moved higher after reporting higher than consensus third quarter revenues and earnings, but subsequently dropped $38.18 to $1,545.84
![clip_image005[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/10/clip_image0051.png "clip_image005[1]")
Canadian National Railway $CNI is expected to open higher after reporting higher than consensus third quarter results. The company also raised guidance.
![clip_image006[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/10/clip_image0061.png "clip_image006[1]")
EquityClock’s Daily Comment
Headline reads “Tuesday’s “dash for trash” had the riskiest, most beaten down segments of the market rally the most, an indication that the bears are becoming concerned of a more substantial bottoming pattern for stocks at hand”.
http://www.equityclock.com/2022/10/25/stock-market-outlook-for-october-26-2022/
Technical Notes for yesterday
Equal weight S&P 500 ETF $RSP moved above intermediate resistance at $135.69.
Materials SPDRs $XLB moved above $72.88 completing a double bottom pattern.
Europe ETFs are showing early signs of recovery. Europe iShares $IEV moved above $40.43 and Eurozone iShares $EZU moved above $34.56 completing double bottom patterns.
Mexico iShares $EWW moved above $48.74 completing a double bottom.
U.S. money center banks are developing bottoming patterns. Citigroup $C moved above $44.75 and $44.94 completing a short term reverse Head & Shoulders pattern. Bank of New York Mellon $BK moved above $41.52 and $41.56 completing a short term reverse Head & Shoulders pattern. Capital One $COF moved above $99.97 completing a double bottom pattern.
U.S. Broker iShares $IAI moved above intermediate resistance at $91.20.
Fertilizer stocks are advancing during their period of seasonal strength. Mosaic $MOS moved above $53.28 resuming an intermediate uptrend.
Ford $F an S&P 100 stock moved above $12.63 completing a double bottom pattern.
AutoDesk $ADSK a NASDAQ 100 stock moved above $209.64 completing a double bottom pattern.
Palladium ETN $PALL moved below intermediate support at $180.41.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for October 25th 2022
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for October 25th 2022
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for October 25th 2021
Green: Increase from previous day
Red: Decrease from previous day
S&P 500 Momentum Barometers
The intermediate term Barometer advanced 11.00 to 46.40 yesterday. It changed from Oversold to Neutral on a move above 40.00. Trend remains up.
The long term Barometer added 4.80 to 29.60 yesterday. It remains Oversold. Trend remains up.
TSX Momentum Barometers
The intermediate term Barometer advanced 9.32 to 44.07 yesterday. It changed from Oversold to Neutral on a move above 40.00. Trend remains up.
The long term Barometer added 3.81 to 33.47 yesterday. It remains Oversold. Trend remains up.
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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October 26th, 2022 at 10:16 am
Market viewed BOC 50 bp (instead of 75) raise positively. Amazing to watch the ticker move dramatically higher within a second of release with programmed trading.
October 26th, 2022 at 11:13 am
You really have to wonder if what we are seeing now is a lot of unwinding of protection and short covering. SPX is now above the 50 day which opens us up to an advance between 3874 and the declining 200 day MA at 4122 so we could see a further 6% rally before we see real resistance kick-in. The advance in SPX is happening despite the very large drag of its’ tech components like MSFT and GOOGL. It’s still early in the day.