{"id":68308,"date":"2024-04-04T18:40:45","date_gmt":"2024-04-05T01:40:45","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=68308"},"modified":"2024-04-04T18:43:58","modified_gmt":"2024-04-05T01:43:58","slug":"watching-nvda-instead-of-jobs-report-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2024\/04\/04\/watching-nvda-instead-of-jobs-report-the-market-breadth\/","title":{"rendered":"Watching NVDA Instead of the Jobs Report – The Market Breadth"},"content":{"rendered":"\n

Stock Market Commentary<\/strong><\/h2>\n\n\n\n

NVIDIA Corporation (NVDA) confirmed a double-top with today’s 3.4% loss. For only the sixth time this year, NVDA closed below its uptrending support at the 20-day moving average (DMA) (the dotted line below). Three of these closes have come in the last three days. The stock is now within “inches” of confirming the bearish-engulfing topping pattern<\/a> that has made me leery for almost a month. While most eyes will be on Friday’s job report for March, my eyes will be watching NVDA instead given how the stock has captured the stock market’s imagination and sentiment.<\/p>\n\n\n

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\"NVIDIA
NVIDIA Corporation (NVDA) is looking even more toppy after a decisive close below 20DMA support.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n

In my last Market Breadth<\/a>, in reference to 20DMA support, I claimed that “if NVDA actually closes lower, the technical flavor of the market will sour just a bit.” The technical flavor has indeed soured with the S&P 500 and the NASDAQ also marking their first decisive closes below 20DMA support of the year.<\/p>\n\n\n\n

In my last post I also claimed that “if NVDA closes below the last lows, around $840, suddenly a quick test of 50DMA support comes into play.” That test is now within reach. Given how NVDA has captured market sentiment, that 50DMA test could be the (technical) event of the year so far. A failure of 50DMA support would\/should shift sentiment decisively in favor of the bears.<\/p>\n\n\n\n

Thus, I am watching NVDA instead of the jobs report, and I will be more interested in the trading action in NVDA as another earnings season approaches. <\/p>\n\n\n\n