Power Snapshots

May 3, 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.

Once again moving back to neutral as the markets are flopping around back and forth like a striper on the deck of your boat. Give it a second to calm down, then decide how to grab it.

RSIs making progress to get back on track, most of the pink has disappeared at this point. That doesn’t mean we are off to the races, but momentum is trying to get back in the game.

Today’s spike in new highs shows buyers got more aggressive in a lot of spaces. New highs are jumping over a ST threshold we look for to surpass after a spate of lows hits the markets. We got it today in most places. The buying was real.

Pressure Gauges saw solid buying, but most of the dark green is still avoiding a lot of offensive sectors. That is rotation in its most basic form and can keep the markets aloft, but we do need at least a few of these growth spaces to get in gear before we are likely to see a new leg higher.

The Highs snapshot is one of the more important to watch at this juncture. I have been discussing the need for the green to spread from the shorter measures back to the longer. We started to see more of that today. This is not a hard signal, but something we expect to progress through all the levels as a trend strengthens. Same with the lows if we are in larger downtrends (which is not what we have here so far).

New Lows gone again. I still think if things were getting worse this would have a decent smattering of pink, even on strong days. That is not happening when buyers show up.

Overall, I am still of the mindset that we have a couple more weeks of this correction/consolidation to go, but am not sure if it will be down or sideways. Either is fine as it has been pretty shallow so far, but from a time perspective we are coming up on the correction being half the length of the run off the lows. That is pretty normal in a strong trend to wear people out versus scaring them out because an underlying bid may slow to a crawl, but never really disappears totally. That is what this feels like to me. We may go lower and, if we do, make sure you are watching how many institutions are lurking to take advantage of those prices.

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!

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As always, I hope this helps!