Power Snapshots

June 13, 2024

Highlights:

    • CPI gets a positive reaction and this morning’s PPI being soft is helping too.
    • $IWM putting in a reversal and closing with a solid day, despite the fade.
    • Technology back to top Relative Strength sector.
    • Real Estate came in second to Tech on rate hopes.
    • New Lows more lit up than I would have expected in a stronger day.

Gaps higher across the board in RSI bull ranges. 

Intraday, the gap also sent $IWM into a fresh RSI bull range while $SPY and $QQQ RSI bull ranges popped up to hit the 80 level before fading some. Momentum is there, let’s see if we can keep it today.

Technology back on top with Health Care climbing the ladder as well. The two losers for the day were Utilities and Consumer Staples as money jumped back into risk.

The Wrap Up

Markets were strong yesterday where they needed to be after the solid CPI data. It faded some into Powell, but overall it was a good percentage gains across the board. After the jump, $IWM definitely needs continuation in the next few days to help turn the participation back more positive and broaden the market back out. The recent narrowing is a caution flag that could be put away if this improvement continues, but that is still to be seen. I think the data yesterday got many back in the mindset and we saw some fast buying, but not overwhelming, so the continuation of both price and breadth broadening would be a best case scenario. I do like the sectors that are seeing the biggest RS moves over the last week with Health Care, Industrials, Technology and Consumer Discretionary. Energy and Materials losing the most RS ground could be something to watch here too. 

For at least the summer, these reports might not be daily. I am keeping up with the data daily, but want to reserve comment for when I see something worth noting versus just summarizing.

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!