Pre-opening Comments for Wednesday May 29th
U.S. equity index futures were lower this morning. S&P 500 futures were down 35 points at 8:30 AM EDT.
Robinhood Markets advanced $0.92 to $21.39 after the company approved a $1 billion share buyback program.
![clip_image001[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/05/clip_image0011-12.png "clip_image001[1]")
American Airlines dropped $0.54 to $12.90 after the company lowered earnings guidance. Delta Airlines and United Airlines also moved lower following the news.
![clip_image002[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/05/clip_image0021-11.png "clip_image002[1]")
National Bank is expected to open higher after reporting higher than consensus fiscal second quarter earnings. The Bank also raised its dividend.
![clip_image003[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/05/clip_image0031-12.png "clip_image003[1]")
More technical evidence that U.S. equity prices have passed an intermediate peak! Equal weight S&P 500 ETF moved below its 20 day moving average at $165.33 and its 50 day moving average at $164.81. At best, their intermediate prospects now face significant overhead resistance and, at worst, could complete a double top pattern on a move below $158.83.
![clip_image004[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/05/clip_image0041-9.png "clip_image004[1]")
EquityClock Outlook for May 29th
Topping patterns in a number of areas of the market has forced us to expand our list of market segments to Avoid.
See: https://equityclock.com/2024/05/28/stock-market-outlook-for-may-29-2024/
Technical Notes
Dow Jones Industrial Average extended its move below its 20 day moving average at 39,171.16 and moved below its 50 day moving average at 38,905.36. Negative strength relative to the S&P 500 Index was extended. Early signs of a double top?
Micron $MU a NASDAQ 100 stock moved above $130.54 to an all-time high extending an intermediate uptrend.
S&P 100 stocks moving below support and extending an intermediate downtrend included Ford, Kraft Heinz, Accenture, CVS Health and Intuit.
NASDAQ 100 stock moving below support and extending an intermediate downtrend included Monster Beverage, Atlassian, Costar and Zscaler
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for May 28th 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 May 28th 2024
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for May 28th 2024
Green: Increase from previous day
Red: Decrease from previous day
Link offered by a valued provider
What Happens to GOOGL When This Negative Divergence Executes
What Happens to GOOGL When This Negative Divergence Executes – YouTube
S&P 500 Momentum Barometers
The intermediate term Barometer dropped 6.00 to 43.60. It remains Neutral. Daily trend is down.
The long term Barometer dropped 2.00 to 71.00. It remains Overbought. Daily trend is down.
TSX Momentum Barometers
The intermediate term Barometer dropped 1.35 to 58.74. It changed from Overbought to Neutral on a drop below 60.00.
The long term Barometer slipped 0.45 to 67.71. 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 29th, 2024 at 10:35 am
NVDA – It really got stretched yesterday trading completely above the upper limit of the Bollinger Band besides hitting high 70s RSI. It’s popped above a decent sized two and a half month base. It needs a little time to cool off. Jim Cramer’s question last night was that no matter how good the fundamentals are when everyone already is in where is new capital going to come from to go into the stock. That can cause it to stall. There has to be more incremental buyers over time but the funds are going to come out of the rest of the market. It’s a great big sucking sound as NVDA hoovers up capital out of everything else. As I type semis are down but NVDA is up. It’s coming out of everything else as well.
May 29th, 2024 at 3:59 pm
Hi Larry: I appreciate your observations. I’m still holding NVDA but not sure when to take profits.
May 29th, 2024 at 5:08 pm
Florence this ride won’t come without turbulence but it is in the early stages. I think $1300 will come soon and $1500 is a reasonable one year target. The one real bogeyman out there is a Chinese invasion of Taiwan because that possibility is not priced into the stock at all. Most of NVDA’s chip production would stop immediately. NVDA is trying to diversify manufacturing locations with new facilities in Vietnam. We need Uncle Sam to protect our investments.
May 30th, 2024 at 12:49 am
Wow! So much to think about and consider!