Power Snapshots

April 12, 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.

Markets bounced again instead of following through to the downside. While it looked good on the surface, it is going to take more than that to repair Wednesday’s short-term damage. Moving Average breadth readings improved a little, but by no means erased what happened.

Same here, a little improvement, but also some CFGs and 9sma readings are going pink in some troubled spots. Apparel & Luxury Goods, Retail and Insurance all with CFG below zero, but still room to stretch before a bounce. Insurance is the lowest CFG reading with the highest RSI putting it oversold and in RSI bull range. It’s worth looking for a rebound here short term if buyers want to keep the trend. IT Services and Household & Personal Products both cracking the 40 level giving us the opposite of the Nitrous. This can lead to an acceleration to the downside, but be careful, like most downside moves, the velocity in both directions is usually much faster than uptrends making them harder to catch without being whipsawed on some level.

Short-term breadth lightened up a bit on the negative skew, but still favors the sellers today even with the positive price gains.

After the strong one way pressure Wednesday, yesterday was quiet. Semiconductors, Precious Metals and Independent Power & Renewables saw the most one-sided buying. Thrifts & Mortgage Finance is also a surprising subsector to show up today after it’s rout. Maybe it’s trying to decouple from Regional Banks? Notable is the advancing volume in Technology which goes with the current increasing RS status among the sectors after a drop down near the bottom of the list. This consolidation has been going on for 4-6 weeks now in the space and may be ready to emerge instead of collapse. Maybe not, but let’s keep an eye on it just in case.

A few more new highs coming in today, Precious Metals kept pushing. Internet & Direct Marketing with nice readings and seems to be holding up well in this environment.

Buyers came back in Thursday and pushed the indexes to gains, but sellers still have some traction here. New lows backed off, but stayed elevated overall today showing under the surface there is still a battle for control going on. The sellers are taking their shot. The broader markets have been moving mostly sideways for almost 6 weeks now, so if the sellers fail to push us lower here, we might have to accept this could be another rolling correction that takes the froth out of sectors without taking the wind out of the markets. Time will tell.

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!

This information is for educational purposes only and is not a recommendation.  Please see the full disclosure in the footer.

As always, I hope this helps!