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NVDA Watch-- If the resurgence of NVDA stock (+30%) during the past 9 weeks is the poster child for the entire market, then we should pay close attention to any weakness from yesterday's new ATH at 243.37 to determine if it represents a minor pullback within a larger, developing, incomplete advance, or something more damaging to both the stock and the overall market...My pattern work argues that NVDA weakness must be contained above 230 on a closing basis to avert inflicting potential significant technical damage to the post-August uptrend setup.
Today, the market pulled back and broke the support level that had been keeping the potential impulsive micro pattern off the 10/1 low intact. With that break of support, we are now left looking at another potential ending diagonal pattern to complete wave c of (v) within a larger diagonal. That larger diagonal could be either a leading diagonal per the yellow count or an ending diagonal per the red count.Now, this smaller-degree diagonal off the 10/1 low certainly has its issues and is far from ideal.
With the market pulling back even more today, the question asked in the title of this update has to be on the table at this time.As we have explained in the last two days, if we are dealing with a diagonal to the target overhead, then the 3rd wave came up short of the standard target. So, it clearly places into question whether this pullback is a wave 4 in that diagonal.However, should the market break down below the wave 2 (7700SPX) in that potential diagonal, then we completely invalidated that count as shown.
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