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After Nvidia’s (NVDA) blockbuster earnings announcement after the bell on Wednesday, the market could very well have been saved from what could have turned into a nasty slide lower. This could have some positive net effects on the technology sector as investors become a bit more optimistic about earnings in the short term.
The advent of AI and all the tech companies participating in this new market has led to a new push higher in many of these names as investors anticipate what has been described as the next technological revolution. On the flip side, some have suggested this is simply leading to a bubble forming as the underlying economic fundamentals still look pretty ugly.
However, the continued talk of a economic recession and turmoil has yet to play out, causing many to question just how ugly this picture actually is. Nonetheless, we are not in the business of pretending we are the economic weather vane, we are in the business of finding the best possible trade given what the market is doing at the current moment.
Premarket, things look to be pushing higher as SPX continues to defend that 4100-4120 area, making its way back up to the previous level of support, 4150. If we can reestablish this level as a strong support, the market could push higher back up to 4200. The fall back to 4100 could have been the blowing off of steam we have been anticipating much of this week. If that is the case…
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