Power Snapshots

May 7, 2024

Let's Start Here

Power Snapshots is getting an upgrade. From here on we will have the carousel everyday so you can get an idea of how the flow has gone for the previous 5 days. As an added effect, if you don’t expand the charts, but instead use the arrow on the right side to move it forward, you will see each day morph from one to the other giving even more detail to the changes as they happen day to day.

Buyers showed follow through on Friday’s strong post jobs move. Utilities are showing the most strength across all measures, but also down on the day with other defensives. Financials are also making a mark now that Regional Banks and Thrifts & Mortgage Finance are trying to work out of big bases after not performing a large part of the recent leg higher.

RSI snapshot shows momentum continues to make headway albeit slowly, we now have most prices back over the Number and are even starting to see a few go back on Nitrous. On the cusp, we are also seeing some like Biotechnology that RSI are just getting to 60 with CFG well over 100 and 9sma on RSI still below 50. I am watching this one as a offensive tell. If we can keep moving through and solidify the new RSI bull range, it bodes well for the rest of the markets. It’s not the only one, just and example of how we watch transitions like these from a trend and momentum standpoint in the same indicator set.

Now we are starting to see the 10 day highs come down off the spikes, but stay high enough to color the space while the MA measures are starting to populate with green as well. This is the type of progression we need to see for this to continue. 

Some solid buying pressure today, but nothing over the top. Just buyers gaining confidence day by day with the progression and picking their spots along the way. The can give specific target messages about sectors and spaces moving, but it can also just give some general clues about desire to be involved at all or not. As usual, with each day things don’t crack and head back down, more are emboldened to step back in and build positions again. 

As far as progression, New Highs has done a good job spreading from 10 day highs reacting and now moving out the spectrum to the longer dates. It is nice to see such progression in areas like new 63 day highs just two weeks into the rebound attempt. 

This is what the bears didn’t want to see. They would be better off if at least a few spots were still showing definitive selling during this bounce and it just isn’t happening so far. If we do struggle here at underside resistance in the indexes, it will be interesting to see how this snapshot reacts. If it starts popping quickly, it will be a good indication we might have more time to deal with the correction. If it doesn’t really react much at all, I would keep my eyes open for a range break higher, sooner than later.

About two thirds of this page are set up for shorter term notification of activity or signals to look deeper, the rest do give some longer term breadth and momentum positioning. All are currently doing what you would like to see them do for this correction to be winding down, but that can change any day. For now, many of the right boxes are being checked, maybe just a little slower than many want. Not slower than normal, just slower than the crowd wants. Maybe it’s us getting too expectant and impatient and not anything this correction/consolidation is doing.

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As always, I hope this helps!