May 22nd, 2024

Bulls are keeping the market in a holding pattern; they just have to hope that when NVDA earnings hit, the market doesn’t plummet like a Boeing. Technicals remain strong and support higher prices in the Indexes, but rates are creeping higher again, and all the bulls’ momentum relies on NVDA.

I dislike that this is the current state of the market, but unfortunately, it’s at a technical juncture where they need to maintain the momentum, or it could be quickly lost, with NVDA as the key to that.

Today is likely to be a repeat of the last two days, with bulls attempting to rally us; when momentum slows, we may pull back into the same range we’ve been in. It’s unlikely we’ll see a significant push beyond the range of the past two days, but if we do break above the weekly highs or lows, it could prompt weak positions to cover before NVDA earnings.

For day traders, keep your trades small. Be selective in your choices, monitor rates and NVDA for leadership in price movements. Expect low volume and the potential for choppy price action.

Cheers, DELI