Power Snapshots

May 21, 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:

  • Monday was an up day across the board, but some selling did creep in.
  • Consumer Discretionary and Consumer Staples subsectors saw new lows perk up.
  • Precious Metals stands out as we scan through the views.

Major indexes opened the week with gains, but on some of the lowest volume of the year. It’s still up. The RSI bull ranges are extending and $IWM CFG has the potential to roll into a Positive Reversal if we get another up day soon.  

The intraday view is still cranking along in the RSI bull range and currently $SPY and $QQQ are playing above the 60 level showing strong momentum. $IWM isn’t as strong, but still high in an RSI bull range. It certainly has a lot more of a battle between buyers and sellers keeping the momentum in check, but so far the buyers continue to come out on top. Divergences on this level are present across all three, so the retest scenario is still on the table this week or next. If so, we still think it will be a short detour.

Seeing some separation here in different sectors. Energy is perking again with other commodities. Utilities and Financials remaining the strongest overall sectors here. There is also a notable drought in the Consumer sectors and Health Care sectors glaring at us. None of these numbers are bad, they just aren’t there yet. Consumer Discretionary might be the exception as Leisure Goods and Automobile are struggling in this rebound.

CFGs are working off the short term excess in most spaces while the RSI remain fine. We only see Autos and Leisure Goods not above The Number. Nothing really stands out here other than more hitting Nitrous with the potential to accelerate higher.

A true mixed day even though overall markets gained. Over half of the subsectors were flat or down on the day. 6 different subsectors were down more than 1% on the day.

Real Estate saw the strongest selling, but they were not the only ones. The selling leans to more defensive areas including Consumer Staples and Water in the Utilities space, but it’s hard to put any weight into it yet. Precious Metals is still on fire and being bought regularly, but most commodity spaces are doing fine. Semiconductors also saw some strong buying pressure again as it has resurged back to leadership over the last week going into the NVDA earnings tomorrow.

New highs are slowing some as digestion sets in after a quick surge recently.

New lows popping in after the breakouts held for a minute smells of normal profit taking and rotation. I am fine seeing it come in the defensive Consumer Staples, but if Consumer Discretionary keeps slipping it could have a ripple effect in the broader markets eventually.

The Wrap up

Monday was an up day with some rotation going on under the hood. It is not a worry as of now since we are still in the time zone for a retest of the breakout. It may or may not happen, but a lower volume holiday week can bring with it increased volatility if one side decides to push. This is short term detail and positioning for now under the broad view that the markets are resuming a strong trend higher.

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!