Twenty-four hours ago, I did a post called Sealing the Deal in which I pointed out the importance to the market as a whole for the NVDA gap to be sealed. Well, it did so (and, just to be a smart-ass, the market decided to get cute and very briefly pushed past the gap, even though this was utterly unnecessary and uncalled for).
Contemporaneous with this, the /ES tried to push its way back its own medium-term resistance yet failed to do so.
What this line represents is a level which, if exceeded, would give the bulls some momentum, yet the line has held fast. The lifetime high (circled) remains unbroken, and the “lower highs” (arrows) are showing that momentum has stalled.
Below is NVDA on a daily basis. This stock is crucial to the psyche of the market, and if this gap seal does represent the terminus of its counter-trend bounce, we could finally enjoy a few weeks of weakness for a change. The real “sealing the deal” can’t take place until a week from this very moment, when NVDA is getting ready to open for trading on the heels of its most recent earnings report.
