Power Snapshots

April 17, 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 stopped the bleeding on the surface with the Doji or spinning top candles, but continued to slip a little on the breadth front. The Doji are a sign of indecision after the back to back 90% and 80% down days, usually a sign of short term capitulation. Yesterday buyers were picking their spots, but couldn’t overwhelm the residual sellers. 

The continued drip is apparent by more subsectors and sectors now with CFG moving well below zero. Many RSIs have moved into potential bear ranges (potential because if they are just below 40 and spike out in 1-2 days, keep them in the RSI bull range column for now) as the CFGs dove, but there are some spaces like Energy, Materials and a few other scattered subsectors that are holding the 40 level and getting pretty oversold via CFG. 

Short term breadth pushed even farther into the red today giving a strong signal we should be washed out short term enough to entice some institutions to nibble at least. Their vigor or lack there of is our message of what is likely on the horizon.

Pressure Gauges backed off some and calmed. It is interesting to note that the two that look the worst today are Real Estate and Utilities, two defensive sectors that were gaining some relative ground in last week’s selloff.

Tuesday wasn’t about rebound, but more about stabilizing and stopping the fall. Buyers put some stakes in the ground, but no big sector or subsectors moves higher.

As I mentioned in the beginning, even though the $QQQ eked out a gain, most did not including our Universe, and the breadth reflected that. Larger names got more attention again at this level. Large and Mega-cap growth seem more like the safety plays right now than many of the defensives do. That is where the first strikes have been when buyers dip back in after a break.

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!