Power Snapshots – May 30th, 2024
Power Snapshots – May 30th, 2024
Highlights:
- Back Test is upon us for $QQQ and $SPY
- RSI bull ranges holding, $IWM likely a hard test soon
- Defensives taking the brunt again, but all got a taste of the selling today except Specialty Retail and Telecom
A gap down started the day ugly and we never really climbed out of the gutter leaving upper shadows on all the daily candles. $SPY is finally back testing the breakout and $QQQ is reluctant to join. $IWM already gave it up, but it never got the breakout in the first place, so it is in more of a rejection mode. This week’s hard reversal in interest rates and bonds isn’t helping the little guys at all. $SPY and $QQQ remain in strong bull ranges and above the MA bands. Testing either of those wouldn’t surprise us at all if sellers want to push the issue. $IWM has a big gap just below that is on the docket on any further weakness. How we act at these levels, if we get there, could be good clues as to where we head next.
On the 65min level, $QQQ is the only one really holding a stronger structure in the RSI bull range, but any further weakness will likely test that. Two of three in RSI bear ranges on this level puts the burden of proof on the buyers in the short term. $IWM has been the weakest and is seeing a potential divergence with CFG revisiting OS and the last hour candle turned up to form the pattern. This one needs a strong candle to start the day for this pattern to play out, that one little candle just isn’t enough to be comfortable with. A weak start and strong close would catch quite a few off guard after the last two days and going into the end of the month. I can’t say it will happen, but it would fool most, and that is often what markets like to do in these little shakeouts.
While there were no good performers today and the ranges were fairly tight, Communication Services and Information Technology came out on top and gained the most RS points over the last week with Energy right there too. Defensives are the most defensive here from an RS standpoint and have been getting hit hard in this selling.
READ MORE HERE:
The Wrap up
More selling as buyers still aren’t showing back up. Sellers are pushing and making some headway here showing mostly in the small cap spaces, but it’s been more than that. The breadth has been narrowing over the last week or more. This is giving larger capitalization indexes the edge right now as a small group of mega caps are helping prop those indexes up. I will be paying most attention to the 65min charts here as many of the daily are still holding up well, but look to be coming into an important juncture. The short term readings are getting washed out here, so any broad reversals could be considered if the RS is in the space with a tight out just below the reversal lows. You need to see positive price action materializing on a lower level and buyers showing up with some persistence before committing here.
This information is for educational purposes only and is not a recommendation. Please see the full disclosure in the footer.
As always, hope this helps!
20240530
Disclosures
The information contained on this site is provided for general informational purposes, as a convenience to the readers. Power-Investing.com is owned and operated by Flash Publishing and does not make recommendations to buy, sell or hold any securities. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Power-investing.com does not engage in rendering any legal or professional services by placing these general informational materials on this website.
All the information provided on the site is accurate to the best of our knowledge, however Power-Investing.com specifically disclaims any liability for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if Power-investing.com has been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.
Power-Investing.com makes no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other external sites are offered as a matter of convenience and in no way are meant to imply that The Company endorses, sponsors, promotes or is affiliated with the owners of or participants in those sites, or endorse any information contained on those sites, unless expressly stated.
G. Thomas Lackey Jr. is a registered investment advisor affiliate with Relativity Capital Advisors, LLC which does provide professional financial services including investment management, financial planning and business consulting for a fee. If you would like to learn more about any of these services please visit us at relativitycap.com and we will be happy to provide more information. Relativity Capital Advisors, LLC and portfolios managed or advised by G. Thomas Lackey Jr. may or may not own securities mentioned on the Power-Investing.com website
