NVDA Surges 8.7% After Earnings Beat as SPX Faces 7,729 Resistance

$NVIDIA(NVDA)$ rallied strongly.

The earnings report beat expectations and pushed the price up +8.7%, driven by a morning move that left a consolidation/indecision for the afternoon.

Interestingly, $Micron Technology(MU)$ closed slightly in the red at -0.3% and $Advanced Micro Devices(AMD)$ at -0.9%, failing to participate in the rally, while $Broadcom(AVGO)$ and $Texas Instruments(TXN)$ did so with +4.4% and +1.8% respectively.

The $S&P 500(.SPX)$ gained traction, recovering its central weekly level while facing resistance at the monthly level of 7,729 (proving how these pre-modeled levels can contain moves when institutional algorithms react to them).

The SPX managed to fill the gap opened at the bell, so today’s move can be considered clean from a price action perspective. The only risk technical criteria to watch are the resistance at the mentioned monthly level and breadth (stock participation) as described below.

Tomorrow, the Fed Chair speaks in Jackson Hole. Many people are expecting a hawkish tone and a subsequent selloff in the market.

Macro indicators do not contradict that thesis, considering sticky and elevated PCE inflation, strong domestic demand and consumer spending, robust business investment, low unemployment and labor market resilience, and very importantly, geopolitical supply shocks.