Before the NVDA celebration, markets finished mixed at the surface but deteriorated sharply underneath.
At the close the DJIA gained 47 points and the SPX rose 25.
Beneath that narrow strength, however, the internal damage accelerated:
The NYSE posted 652 net declines while the NAZ logged another 1,020 making it clear that the rest of the market had no interest in the coming celebration of a fistful of AI-driven glamours.
New lows told the same story. The NYSE produced 139 net new lows, and the NAZ added another 379, confirming that the vast majority of stocks continue their sharp declines even as an elite group of mega-caps mask weakness in the headline averages.
The Q’s exploded `1.64% after NVDA calmed recent jitters about an AI bubble.
This morning the celebration will likely continue and it will be important to see whether the broad market participates.
The internal deterioration juxtaposed against the All In frenzy has the whiff of across the board Right Shoulders in the SPX, the QQQ, the DJIA and NVDA.
Notably several Crouching Tiger buy setups in key stocks in tandem suggested they were coiled telegraphing the after-hours rip.
Names included COHR (which we used as an idea for Wednesday), CRDO, TER, BE and ORCL to mention a few.
In the case of ORCL the Crouching Tiger played out at the 200 day and + or – the 208 square-out flagged last week.
In sum many generals have taken arrows in the back of late.
META, MSFT, CRM, ORCL, DELL and PLTR to mention a few.
But it will take a close below the October10 low of 6551 to confirm that October 29 was the high.
