NVDA Technicals & Cycles-  Push back to new highs looks likely

The recent stalling out in most US Equity indices over the last week hasn’t taken away from the appeal of the current rally from early August lows.  A bullish advance back to new all-time highs is still expected into mid-September ahead of any seasonal Fall correction.  The Equal-weighted SPX has already pushed back to new all-time high territory coinciding with the breakdown in the US Dollar and Treasury yields, and Small-caps have started to kick into gear once again.  Furthermore, market breadth remains constructive and sentiment is not yet bullish enough to mark a larger market peak.  Cycles show strength into mid-September in both Equities and Treasuries before a selloff takes hold, and sectors like Financials and Consumer Discretionary have been instrumental in serving as a “tailwind” for Equity gains at a time when Technology has been a bit wobbly.  Overall, unless NVDA, and by extension, Technology, starts to roll over in bigger fashion it looks right to stay bullish.

I’ll forego any market commentary tonight in favor of NVDA analysis given that SPX and QQQ both remain largely range-bound ahead of this week’s monumental earnings event out of NVDA post Wednesday’s close. 

It’s not wrong to say that tomorrow’s $NVDA earnings should be a critical driver for Technology along with the US Stock market given its representation among various ETF’s. NVDA now accounts for over 6% of SPX, the second largest holding behind $AAPL.

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