2 Key Signs of The Short-term Market Top
The star stocks in 2023 are still shining in the new year. Driven by the strong financial report in the fourth quarter, NVIDIA jumped sharply and opened higher and reached a new record high.
However, the performance of making up the gap on the same day still left some hidden dangers. Will this trigger the arrival of the US stock market correction?
As we all know, the main driving force of this round of continuous slow bull market of US stock is AI stocks, and NVIDIA is the leading figure. After the Lunar New Year, the short-term deviation between Nasdaq and S&P was also affected by Nvidia's three-day consecutive decline. In other words, if NVDA shows signs of head, it will probably trigger continuous downward pressure on US stocks.
Fundamentally speaking, the beautiful data and expectations, coupled with the long-term speculation of related concepts in the market, make it less likely that there will be a long-term market top or a trend reversal.
The bulls are now given the task of holding the "take-off point" near 742. If they can refresh the high point again this week, it will be a very positive bullish signal. Downward, 698 will provide initial support, while the weekly reversal point of 662/663 is expected to become a new important watershed, and a large number of buying will appear in the above position.
Therefore, judging the trend of this stock can make the following guesses: this week's new high = positive bullish = the US stock index continues to rush; Falling back below 742 = individual stocks and indexes need to be adjusted back; The dilemma of going up and down in the week means the shock trend of seesaw; The follow-up 698 to 662 area will probably be an ideal multi-head entry point. In the longer term, the power of the concept should not be underestimated. Unless there are huge risks in the financial market, the general direction of buying AI stocks on dips should not be changed.
At present, there is no obvious direction in the three major indexes of US stocks, and there is no alarm signal in the slow process of reaching new highs.
However, we can refer to the low level of Nasdaq last week. If it falls below, it is a short-term risk signal. if the oil is weak, the stock will also be under pressure, although in the past few months, the stock index has mostly followe the oil price.
In the last 1 or 2 weeks, there is a lack of good opportunities in stock index trading strategy, so you can continue to hold the original trend position, and don't do backhand easily.
But if you are not in the car, it is completely OK to wait and see. In other varieties, there is not much room for the US dollar to go down, but the rising strength and speed are also weak.
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