NVDA saved the day today, which we discussed as a possibility yesterday. SPX got close to the 7750 upside key level but did not break it for the time being. While today might have felt like a momentum day, I think the opposite is actually true. We rallied mostly due to one stock and most of SPX was actually down today.

Here is a breakdown of the market internals as taken from our dashboard:

There was a 2:1 decline to advance ratio in SPX today. NVDA was the largest market cap mover, but other stocks like CRM, CRWD etc played a small roll too. These are not normally market movers.

The daily chart has finally broken free of the narrow range from the past week or so, and the bear flag theory from yesterday’s video is invalidated. 7750 is an important level and if it breaks, there is a good chance SPX makes a run for the upper end of the expected move.

Tomorrow is Friday and usually Friday’s are up days, so I wouldn’t be surprised if we attempted to tag 7777.

On the shorter timeframe, we have once again re-entered the grey box and you can see the significance of 7750 as per the red line. There isn’t much between that level and all time highs.

Now is the real test of if we are in a ‘sell the rip’ market or not. This was the first real up move in a couple of weeks.

My initial take was a bearish one if NVDA popped and for now I will hold that stance, but this is a fast moving market so if we break the upper end of the expected move, then perhaps we re-evaluate.

I do think the market is still more bearish than bullish in the coming weeks, even if we push towards 7800 again. The market internals I shared earlier are not something to ignore and eventually it will catch up with the market.

Also a quick note is that SNDK, MU, AMD were all red today. Even within the chip stocks, we had a mixed reaction to NVDA. MAG 7 were mixed as well.

The market lacks correlation and momentum. Something has to give eventually.

Good luck!