Power Snapshots

May 8, 2024

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.

Not much change in the moving average breadth today with markets basically flat. With markets back challenging the breakdown areas, it should be no surprise we see a little back and forth action. Still in corrective mode, but with a persistent move off the lows. How we fare on this challenge over the next few days matters for the life of the correction.

The RSI momentum readings are where we gauge changes in momentum and trend on this page. Currently price is doing what it needs to, but being right at or near resistance zones and RSI near 60 with CFGs well over 100 like in Health Care subsectors, it could stick in this zone for a bit before deciding on the next directional move.

The Short-term Breadth Snapshot gives us varied looks at short term strength which has been good at pushing new 10 day highs for days now, but we need to see it start showing up in the %>20sma readings soon or it could be telling us a short term rejection is more likely in the resistance zones for now.

The day was more of a push than anything. It started strong, but once challenged, it was a battle to come out positive, especially for $QQQ. Utilities saw buying again after a one day respite. Materials are also seeing buyers come back after a break. Chemicals leading that charge today.

New Highs took off some of the heat today, but the wide number of highs across the first 3 time frames looks healthy.

Only notable was Hotels, Restaurants & Leisure which has thrown a couple of other potential issues flags on this report on recent days.

The Wrap up

A push day for the markets into formidable resistance zones on all three major indexes after a strong rebound off the first challenge of a strong rebound off the counter-trend lows. That sentence is a mouthful, but it describes where we are right now. Give it a day or few to see what it wants to tell us about the current consolidation/correction.

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!