Market Reactions To NVDA

Good Thursday Morning, MPTraders!  February 22, 2024-- Pre-Market Update: The Market Reactions to NVDA, which rallied a whopping 20% last evening from the initial algorithmic post-earnings spike low at 645 to this AM's New ATH at 775.59, as we might imagine had quite an impact on tangential futures indices and major index ETFs...

Here is a look at the current technical setup in NVDA followed by a Big Picture view of ES and a view of SPY...

NVDA's powerful "upside reversal" in the hour(s) after the company released its earnings report represents the conclusion of a brief 13.5% six day correction and the initiation of a new upleg that projects next to my intermediate-term target zone of 800 to 820 next... Last is 761.40...

My Big Picture ES Chart (see chart below) also argues that a brief 2.1% pullback ended late yesterday at 4959 and that a new upleg is in progress that has climbed to a marginal new ATH at 5067.75 so far, but has upside projections as high as 5200 in the upcoming days/weeks. As long as any forthcoming weakness is contained above the 8 Day EMA on a closing basis, now at 5017, the bulls will remain in directional control... Last in ES is 5060.25

As for SPY (see my attached 4-Hour Chart), similar to ES, it pivoted to the upside late yesterday after completing a brief 2% correction from 503.50 (2/12/24) to 495.56 (2/21/24) and has thrust to a new ATH at 504.49 this AM, in route to a projected next target zone of 511 to 514. Only a sharp downside reversal and violation of yesterday's (2/21/24) pivot low at 493.56 will compromise the still dominant, powerful multi-month uptrend pattern... Last is 504.04...

Next Up:  QQQ and IWM in the aftermath of NVDA earnings...