Power Snapshots – May 29th, 2024
Power Snapshots – May 29th, 2024
Highlights:
- Mixed Daily action
- Breadth leaking still with small caps
- Commodities and Tech hold up the best
- Defensives see most selling pressure
Markets gapped up to start the week and then quickly lost steam. $SPY eked out a gain while $QQQ came off the lows to close back near the highs of the day as the AI narrative pushed forward in Tech. $IWM started the strongest and gave it up the fastest, closing with a small loss. It was a neutral day on lower volume when all was said and done.
Intraday you can see the $IWM lead down from the beginning. It gave up much more in the morning until finally dragging the other two down with it. All three saw strong rebounds into the final hour, but the small caps and broader markets had much more to overcome. Breadth was weak and turned negative during lunch and rolled over with price from there. $QQQ the strongest and still in a bull range. $SPY still needs to get back over RSI 60 level to confirm. $IWM is in a bear range here intraday and was before today’s selloff, so if $SPY rolls over and confirms the bear range, it would put two of three back in caution mode.
Most of the narrative for the day was Technology, and Semiconductors specifically were the only reason markets were up on on the day. That might be the case for the Nasdaq, but the true leadership today came out of Energy and Materials sectors.
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The Wrap up
Yesterday was not great breadth under the hood even though the large caps eked out a gain in the end. While breadth was down some, 23 subsectors were flat or positive with the Power universe down .11%. There are still fishing lanes to look at, but right now there is not much momentum left behind this push. We need to see buyers come back in with some force. I am just not sure that is going to happen before month end, but we still have more than half the week left. If buyers decide to stay on vacation, it’s likely to be bumpy for a bit longer, but so far sellers just can’t seem to capitalize very well on the selling for more than a day or two. Neither side wants it bad enough right now to move the needle, so we wait until they show their hands.
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As always, hope this helps!
20240529
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