The big news tomorrow is NVDA earnings. The big news today, however, is World War III, or at least if you consider Twitter a reliable amalgamation of what’s going on out there. Gold is into that kind of thing, which is why it’s up $100 over the past few days.
Equities, on the other hand, aren’t as thrilled, although the drop is quite modest. What’s more important is that support is failing. Here we see the /NQ slipping lower for the past few trading days, cutting below a trendline.
The break above is the rightmost break on the longer-term chart below, which shows three important events:
- The first failure of the trendline;
- The attempt by the bulls to blast to new lifetime highs, which worked for a few hours and then failed;
- The most recent re-failure of the same trendline.
Let’s just say NVDA has to knock it out of the park to save this eroding, over-valued, over-loved tech market.
As for the S&P 500, there are two crucial support levels looming: the medium-term trendline (anchored to the Internet Offline low of August 5th) and the Election Result price gap. Break them both, and the tone of the market is going to change even more.
Lastly, the crypto crowd continues to feel the wealth effect. Crypto (and even NFTs) are going absolutely ape, and it seems very likely to me we’re going to see six-figure $BTC before the year is out, and almost as likely, even before the end of November.
