Power Snapshots

May 19, 2024

The Reports are coming together now as we come up on our launch. As you can see, the Triple Play charts have found a home in the Power Snapshots. This gives us some context before we go into the Power Snapshots to see how that high level action breaks down under the hood.

Today's Highlights:

  • $SPY and $QQQ breakouts hold through Friday. $IWM isn’t far behind.
  • Participation remains broad, but not too hot here. 
  • New Highs remain robust and maturing to longer time measures.

Weekly Breakouts on $SPY and $QQQ are hard not to be the centerpiece. RSI Positive Reversals hit their objectives on those two with a little more before $IWM gets above those intervening highs. As hard as it was for many to trust, RSI Positive Reversals tend to do pretty well as a signal, and when they don’t work, it’s also usually a nice reversal signal that new lows for the moves are now more likely. We didn’t get a failure on these two. We broke out on 2 of the 3, nothing is overbought and volume grew for the week. Those are all positives in the buyers’ favor on this highest time frame.

Dropping down to the daily charts shows volume did increase, and after the breakouts. From an RSI view, all the bull ranges have been solidified and, as of Friday, all three are now on Nitrous. This is with Thursday and Friday being more digestion days which is also good to see.  It’s better and often easier to trade when markets have a good sense of ebb and flow to them. In that light, a back test would be fine and normal, even one that pierces the breakout levels wouldn’t be surprising or problematic at this stage as long as buyers show up. If that back test does happen, we will be watching the RSI to see if they find support near either moving average.

The 65 minute chart still looks very strong and orderly. After a surge in RSI on the breakouts, they have now pulled back much faster while price floats down toward the MA bands and the 45ema on the price window. CFGs are already near oversold and turned up in the last candle on Friday forming a RSI Positive Reversal on $QQQ. This still looks like a strong bull trend, but the slope is getting a bit steep. This is why a back test might be in the cards so the buyers don’t get carried away too early.

Moving average readings improved a little more, but not really that noticeable. For the week it looked like it was more about some rotation than it was any big theme. Real Estate and Materials did show improvement throughout the week. Utilities and Financials were strong coming in and padded those numbers some this week, while Consumer Discretionary tried to start strong and faded.

RSI snapshot remains strong with a lot of Nitrous out there and a few CFGs over 100. There are still a few RSIs that need to get back over 60 for the first time since the correction started. I did find a routing change from the subsector rework that didn’t get fixed on Wednesday, so I have removed those days as the data was not populating correct.

Buyers don’t want to give up just yet and continued to keep most subsectors and 8 of the sectors with solid 10 day highs readings. A few like Health Care into Friday were seeing more selling, but it was still the top performing sector for the week.

A normal day, actually a little benign for recent OpEx days, with some random concentration. Energy and Financials stand out a bit.

Coming off the heavy green from mid week, but still firmly in the buyer’s camp. Always good to see buying continue after major breakouts like we saw this week. The 253 day readings are starting to light up as you would want to see on a breakout move. The leaders go green first.

Some lows perking up at the end of the week, still just a few. Health Care and Consumer Discretionary accounted for most of them.

The Wrap up

The markets navigated the breakouts about as good as they could have. Some digestion here is good and a back test would be very normal in the next week or so. The stats above suggest a strong and progressing participation and momentum at a reasonable pace so far. Now that OpEx is out of the way and it didn’t derail any of the price action, it may clear the way for extension away from the breakout level sooner than later.

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!