The market opened solidly higher Wednesday, but gains faded and turned into losses. Nvidia (NVDA) helped lead the downside reversal following mixed results, guidance, and commentary from AI server maker Super Micro Computer (SMCI).
Other Magnificent Seven stocks slashed gains or reversed lower, as Meta Platforms (META), Apple (AAPL), Microsoft (MSFT), Tesla (TSLA) and arguably Amazon.com (AMZN) hit resistance at key levels.
The stock market rally attempt is still ongoing, but it wasn’t a great sign.
The stock market rally reversed lower from a strong open, same as yesterday. The Dow fell 0.6% . The S&P 500 index sank 0.8%. The Nasdaq fell 1.05%. The small-cap Russell 2000 tumbled 1.4%.
Nvidia stock rose 4.4% this morning, but finished off 5.1% to 98.95 in an ugly, downside, outside reversal day. It was the lowest close since May 22, just before its earnings gap-up breakout. Not healthy, earnings in two weeks. Plenty of time to make amends.
Apple stock rose 1.3% to 209.86, but hit resistance at its rising 50-day line.
Meta stock fell just over 1% to 488.92, reversing lower around the 50-day line again.
Sloppy, sloppy, sloppy. Let the market do what it does in these moments. We will make some easy money on the way back up. Can’t wait. Watch those falling knives.
Better to pay up a little on bullish confirmation than to pick a bottom.