Tech Talk for Friday July 1st 2016

by Don Vialoux, Timingthemarket.ca
Editor's Note: Next Tech Talk report is released on Tuesday July 5^th

Observations

Surprising strength in North American equity markets yesterday! Technical scores for U.S. equity indices and primary sectors increased thanks to trades moving above their 20 day moving averages. Takeover rumors (Hershey, Potash Corp) contributed to gains. However, strength has returned equity indices and related market ETFs to intermediate overbought levels and to formidable intermediate overhead resistance levels. Anticipation of mixed calendar second quarter reports on both sides of the border will not help. Caution in equity markets is preferred. Some sector exceptions exist (Not for the faint of heart): base metals, biotech.

Trading activity in U.S. markets will slow as the day progresses prior to the July 4^th holiday. Canadian equity markets are closed today of a holiday.

StockTwits Released Yesterday @EquityClock

Fear trade unmoved by equity rally as the 30 year T-Bond tests channel resistance

Technical action by S&P 500 stocks to Noon: Bullish. Breakouts: $MJN, $SYY, $ALL, $TRV, $LLY, $MDT, $DHR, $NOC, $ADP, $FISV. Breakdown: $VLO

Editor's Note: After Noon, five more S&P 500 stocks broke intermediate resistance: MDLZ, STZ, WAT, EXC and BSX.

Nice breakout by zinc ETN $LZIC.L above $5.34 extending reverse head and shoulders pattern.

Trader's Corner

Daily Seasonal/Technical Equity Trends for June 30^th 2016

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Commodities Trends for June 30^th 2016

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Sector Trends for March June 30^th 2016

Green: Increase from previous day

Red: Decrease from previous day

Special Free Services available through www.equityclock.com

Equityclock.com is offering free access to a data base showing seasonal studies on individual stocks and sectors. The data base holds seasonality studies on over 1000 big and moderate cap securities and indices. To login, simply go to http://www.equityclock.com/charts. Following are examples:

S&P 500 Momentum Barometer

S&P 500 Momentum Barometer gained 10.60 (22.75%) yesterday to 57.20. The Barometer has returned to an intermediate overbought level. Intermediate trend remains down.

TSX Momentum Barometer

The TSX Momentum Barometer slipped 1.29 (2.08%) to 60.51. The Barometer remains intermediate overbought and maintains an intermediate downtrend.

Keith Richards' Blog

BTW--MoneySaver mag did a video conference with me--its embedded in yesterday's blog -if you know anyone wanting to learn some of the basics of trend following, pass this link along--the video encompasses rules to identify the 4 market phases and then illustrates the methodology on a few stocks. http://www.valuetrend.ca/bonds-are-overbought/

Disclaimer: Seasonality and technical ratings offered in this report by www.timingthemarket.ca and 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