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.

Moving average breadth continued to sink in short term readings and begin to spread more to the %>50sma while the long term readings still have some room. How deep this gets before we bounce is good information about where we are in this trend.

RSI showing more oversold readings with CFGs getting below zero, I have seen them in the -40s on a straight drop, but that is not the norm. A turn up and often a divergence below zero is a pretty good short term trigger for the nimble. Focus on those with RSI readings at or above the 40 level and on those still on Nitrous (rare but can be powerful).

Short term stretch is getting there quickly as sellers pushed again today. Breadth Thrust Indicators are usually the final piece to turn pink and hopefully red before a bounce. A subsector like Consumer Discretionary falling as far as it is has me looking for a reversal in the coming days. Utilities are getting there, but those reading are a little less powerful with such low component counts in the subsectors you get a lot of extremes.

The Universe had a 80% down day today which pairs that with Friday’s 90% down day. As I have said before we look for one 90% down day or two back to back 80% down days as the signal to start looking. Having a 90% followed by an 80% should be obvious in its rarity and emphasis I believe it adds to the signal. I would look for a strong bounce here very soon. I stress the bounce can be for quick profits, but it is just as important to gauge participation as we retrace some (or maybe all) of this drop. That kind of information can be very helpful when trying to gauge where we go next and who will lead us.

In this kind of selling, this shouldn’t surprise anyone but how this fills out on any rebound will be helpful to spot strength.

Sellers pushed hard once Monday mornings early morning gains got overwhelmed by sellers. The readings are starting to spread into the longer time frames as this consolidation becomes a little more vertical than horizontal like we had been seeing in recent weeks.  The velocity we went vertical isn’t that unusual, but it can be startling after the type of grind we saw.  However, that same velocity has now pushed us into extremes that usually produce a reversal worth trading. The first few days to a week of price action usually tips the hand of that reversals staying power.  First we have to get the reversal. If this is like previous markets, it should very soon.

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!