EB Daily Market Report - Wednesday, August 24, 2022

I'm going to do an abbreviated version of the DMR today as I wanted to get some information into your hands early today. Here are a few key charts I want to focus on:

QQQ:

At this morning's low, the hourly PPO began to turn higher on the QQQ, signaling a possible reversal as short-term selling momentum wanes. Just keep in mind that another trip below this morning's low could negate this signal. So it's clearly a SHORT-TERM signal. It's also worth noting that the hourly RSI moved decidedly beneath 30 (oversold) for the first time in the past two months.

$DJUSSC:

The positive divergence on semiconductors is much clearer and it's occurred at a fairly significant price support level. If the market rallies from here, I would not be at all surprised to see semis lead this time.

NVDA:

NVDA is my choice for a big rebound. It's down 20 bucks from last week's high, likely due to options expiration. A close below 168 becomes more problematic, but I'm banking on it holding from here down to 168 and I've taken a long position. Short-term I'm looking for a trip back to 178-180. 192 would be the ultimate objective to the upside, where we've seen significant price resistance.

Have a great day and I'll be back with my normal DMR format on Thursday!

Happy trading!

Tom