NVDA218.8 is up 4.5% after hours, giving us the bounce we expected.
Remember what I said before earnings? For ES1!7710 to trade back toward its ATH, NQ1!29432.5 needed to:
1) Bounce from its multi-year ascending trendline support.
2) Reclaim the descending trendline.
The first condition was satisfied on Monday. NQ will likely tag the descending trendline overnight, possibly as soon as Globex opens in 2 minutes. Now let's see whether it can break and hold above it.
I called the top when SPX7675.7 was trading around 7.8K and called the swing low on Monday. Both calls played out.
As I wrote in Monday's Desk Note, NVDA's initial post-earnings move has repeatedly failed to hold. Over the past eight earnings, NVDA gained an average of 1.35% overnight, then fell an average of 4.04% from the next session's open to close.
For those feeling FOMO, don't. The entry was Monday.
For traders riding the bounce, trail your stops and protect the gains. NQ must break above the descending trendline before ES can trade back toward its ATH.