The late afternoon rally on Wednesday afternoon certainly foreshadowed what was to occur this morning. All eyes had been on the NVDA earning report, which was due out after the close. NVDA has been on an incredible tear since early January, rising more than 50%. Expectations were high, and the odds of a disappointing report seemed just as high. But NVDA did not disappoint, and the run continued today.
No one who read our report on Wednesday should have been surprised, as we saw NVDA currently in a 5th wave, with a target above 1380. On the heals of that earnings beat, analysts have been falling over each other trying to raise price estimates. One has a high of 1200. Nice to see they are following my lead.
Those who have been following this blog should not have surprised either. We have been calling for a high on SPY above 517, and probably 530 for some time. It would have been hard for SPY to continue higher if NVDA were to suffer a steep correction.
SPY rode the coattails of NVDA's earnings beat, gapping up to 504.14 at the open. A very minor dip followed that, and then SPY drifted higher in a narrow range throughout the day. It reached a high of 508.49, before closing at 507.50.
We believe SPY to be in a 5th wave itself, the completion of which will complete a 5 wave sequence from the October 2022 low. We have been following the end of this wave in detail, with our target above 517, and more likely above 530.
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