Photo by Yiorgos Ntrahas on Unsplash

Markets have been very oversold, and there is great anticipation for a rally as markets approach a cluster of resistance at the convergence of the 50-DMA and 20-DMA sitting in top of each other. If the S&P can get above 4,440, that will clear the way for a retest of the highs set back in July, but does not necessarily mean this season of correction is over.

The seasonal, summer weakness, however, could create choppy conditions as these forces do battle. The market bifurcation continues between the S&P 500 and other indexes, like the Small Cap and Mid Cap indexes. So this is really a concentrated rally, as money is going to a select few stocks. Following its blow-out report, NVDIA will be the market driver today.

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