Power Snapshots

April 11, 2024

Let's Start Here

Power Snapshots will be part of the elite memberships and will hit your inbox early for your daily preparation. These quickly show where each segment stands on the long, intermediate and short-term views from breadth and momentum perspectives. Also, keep an eye out for the weekend version where we put each snapshot for the week in a carousel so you can see how things changed as we progressed through the week.

No doubt, today’s action changed the character of the markets in the short term. Moving average breadth went from a good big of green to a noticeable amount of pink, although still a bit scattered. Most of those that turned pink or red are areas that had already been lagging. But, the day did cost a good bit of green and pulled the majority of the %>20sma readings below the 40 level for the first time in a while. This isn’t a specific signal area, but it is the kind of action we wanted to see to consider a larger consolidation or pullback.

The RSI world came in considerably yesterday with prices heading under the number in many subsectors as well as coming off Nitrous. From here, we see if we can get oversold reversals in CFGs (pink below 0), with RSI pivoting back higher while holding above the 40 level. That would be ideal setup for the subsectors in the coming weeks. Trends are wobbling right now, we wait and see which ones break and which can consolidate and continue.

We saw a lot of 10 day low breaks today. The selling was very broad and defensives didn’t fare any better than cyclicals; actually, some where worse. Energy was the only one really bucking the trend, some of the others were a little less back, but still rough.

It was an 80% day for the Universe as a whole with 3 sectors and 21 subsectors recording 90% days. Energy came out as the recipient of that flow for the day. This was a forceful move on heavy volume and feels like it is giving sellers the leverage they to push for a larger retracement if they can hold the line the rest of the week.

Since yesterday I said, “Overall new highs are still trouncing new lows.” Of course, this is how it played out. Those new highs disappeared fast, but to be expected on such a sell day. Energy and Precious Metals were the only showing for the day.

New lows jumped hard on the 10 day and 21 day readings showing how much damage the day did to trends. These levels are enough to get things started, but we need to see them persist through the end of the week. This is the best chance the sellers have had in a while and gives them an opportunity to make some headway, all in the context of the larger trend and consolidation at this point. Just maybe a little more vertical consolidation if they can keep the rotation at bay for a bit. We talked a little caution last week, but weren’t seeing much for follow through. We might be getting that now. Where it goes, we have no idea. That’s why we pay attention.

A quick review should help you find where money is flowing and get to your fishing lanes for the day a little faster. To dive deeper into any particular space, just go back up top to the menu you can get to any sector or subsector from there!

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As always, I hope this helps!