By Todd Stankiewicz CMT, CFP, ChFC
1/ The S&P 500 Holds the Line, For Now
2/ Nvidia Cling to Key Support
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1/
The S&P 500 Holds the Line, For Now
Past performance is not indicative of future results
The S&P 500 threatened to break below the middle Bollinger Band on Monday’s gap down but managed to recover with a strong intraday reversal. Even in yesterday’s stronger session, the index bounced right off that middle band intraday, a clear sign that this level is acting as key support.
Historically, when the S&P 500 drops below the middle band, it often gravitates toward the lower band. Right now, that puts key levels at 5,994 (middle band) and 5,819 (lower band).
For now, patience may be warranted as long as the index holds above this critical threshold. A sustained break below could open the door for a deeper move.
2/
Nvidia Cling to Key Support
Past performance is not indicative of future results
Like the S&P 500, NVIDIA is battling to hold a critical technical level. However, in this case, it’s sitting right on the lower Bollinger Band on the weekly chart.
NVDA opened this week below that level but has since rallied back above it, reclaiming key support. Historically, a sustained break below this lower band at 120.50,it can lead to more significant downside moves, just as it did in 2022.
Back in Fall 2023, NVIDIA dipped below the middle Bollinger Band but managed to find support at the lower band, setting the stage for another rally. This time, holding the lower band will be crucial in avoiding further downside pressure.
If it holds, it could stabilize. If it breaks, the chart suggests more room to fall.
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Originally posted 6th February 2025
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