Sliding From The Top? Hello traders,
As we roll into these next upcoming weeks, especially with the most recent news on tariffs, I feel the need to share my thoughts.
First and foremost, let's talk about the story. After the inauguration, markets ran up. The S&P followed a narrow upward channel and it broke on Friday, giving signal that some kind of news was bound to come out the following Monday... and it did.
Boom. DeepSeek comes out of nowhere, wiping 600 billion from NVDA's market cap and SPY takes a 12+ point dip.
There's a saying I heard from a trader; "It's the tail that wags the dog." as in, it's the price action that drives the news in some situations. More than not.
Now, let's talk resistance. NVDA struggled around the 150 range time and time again. Charting back to my old "sticky note zone" around 114-116, there is a potential bounce. After that, just below, 111 is going to be a nice spot too.
Personally, I'd like to see 95-97 before going long on calls, but the bounce will be handled in a real-time situation. Likely, when SPY decides it's had enough and they rip it back towards the upside.
I'm predicting this with about 50% technicals and 50% experience. Key advice is to be patient and wait for a definitive bounce. Better to jump in late before jumping in early.
Happy Trading!
