On Wednesday afternoon, NVDA will issue their earnings report. This should be a market-mover (as well as Warsh’s Friday morning Jackson Hole speech), so let’s take a quick look at the semi space.
The semiconductor index SOX is still bearishly configured, in spite of pushing somewhat into its pink reversal pattern. The target is to tag the lower trendline which constitutes that ascending price channel.
Looking closer, by way of the semiconductor ETF SMH, you can see the price gap anchored to Mondays’ low. The first bearish target for this would be the trendline, a little beneath the Leopold Low of late July.
There’s another ETF SOXX with the same purpose in life and with a similar price gap:
As for the NVDA chart itself, I find it inscrutable. Honestly, it’s just a damned mess, and I have no opinion which way it is going to go, except for a heartfelt wish that it would tumble lower. It’s really all up to how much confidence the market continues to have in the massive circular financing that is keeping the AI bubble aloft.
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