Here are a few of the key charts & potential developments that I’m watching for this week, now that NVDA earnings are out of the way. All charts below are daily time frames.
SPY closed at the top of the multi-month trading range with any marginal new high above it soon to extend the existing negative divergences with a potential backtest of the recently broken uptrend line (first & only overhead resistance after the 700’s price resistance/top of range).
SPY daily Feb 26th
QQQ closed on the mid-point (resistance) of the multi-month trading range with a solid close back above it likely to spark a run towards the previous all-time high (ATH), although, as I like to say: Resistance is resistance until & unless taken out (the end-of-day/daily close is what matters when trading on the daily time frames).
QQQ daily Feb 26th
Still awaiting a solid break below T1 on IWM with the reaction off the initial tag of it producing a sideways trading range since.
IWM daily Feb 26th
As highlighted yesterday, we had another pullback to the uptrend line off the Dec divergent low in $VIX, with the 17.20 support just below.
$VIX daily Feb 26th
NVDA closed at the top of the multi-month trading range (resistance) with any marginal new high to backtest the recently broken trendline (next resistance) from below & any test or slight move above the Oct ATH to extend the large negative divergences that were in place at that previous high.
NVDA daily Feb 26th
Also, keep in mind that we have two trading days left in the month, with the monthly PPO on the major indices currently poised to flip to a sell signal with any half-decent or better drop from current levels or possibly even sideways action this month or next, as most momentum indicators, such as the PPO, will move lower even if the market goes sideways, if that sideways action follows a strong uptrend.
Basically, I’m more interested to see how the major indices, $VIX, & Magnificent 8 stocks (including, but not limited to NVDA) trade throughout today & into tomorrow’s close as the initial trading day following an earnings report from a big market-mover, such as NVDA, is usually ‘noise’, with that stock and the market often taking a day or so to figure out which way it wants to go from there.