May 20th, 2024

Remaining in rally mode. On Friday, the markets dipped briefly before buyers stepped in, reigniting bullish momentum. Rates rose throughout the day but have now stabilized this morning, supporting the bullish argument for today.

Technically, Daily Bollinger Bands are still expanding, short-term moving averages are rising, and momentum indicators show we’re not in overbought territory. We’re seeing higher lows but not higher highs.

With NVDA earnings due on Wednesday, keep an eye on their chart as it will likely influence NQ and possibly ES this week. NVDA charts look bullish, but earnings will be the deciding factor.

Today could see the market in a tight upward trend with low volatility, unlikely to retreat to Friday’s lows.

A bearish scenario for today would be if rates surged (ZN selling off), potentially dragging RTY, ES, and NQ down. While rates seem rangebound, quick shifts could impact the indexes.

It’s Monday, with low volatility and volume, so trade cautiously. Have a plan, know your levels, and let the market come to you.

Cheers, DELI