NVDA Post-Earnings Selloff Slams Futures Back to Support

E-mini S&P (March) / E-mini NQ (March)

S&P, yesterday’s close: Settled at 6920.00, down 39.75

NQ, yesterday’s close: Settled at 25,081.00, down 301.00

NVDA sank deep into the red, finishing -5.46%, as resistance at 196 and a call wall at 200 encouraged another post-earnings failure. Other semi and mega cap names followed suit, such as AVGO, MU, LRCX, GOOG, AMZN, and TSLA, driving E-mini S&P and E-mini NQ futures deep into the red. The move erased all of Wednesday’s rally and most of Tuesday’s. However, software, financials, and industrials all had a strong showing, and the E-mini Russell 2000 finished at a session high.

The selling carried into the evening open, and all indices have been under pressure heading into U.S. hours due to yesterday’s sentiment and geopolitical escalation with Iran. PPI data this morning didn’t help either, with January Core surging by 0.8% m/m versus +0.3% expected and headline by 0.5% versus +0.3% expected. December was revised lower by one tenth, but this was marginal relative to the large print above expectations.

E-mini S&P and E-mini NQ futures bumped up into settlement, but slipped immediately on the reopen last night. This leaves a strong area of resistance at the 6920 gap in the E-mini S&P, with the recurring 6926.25-6931 level just above; the bulls must close back above here to regain the upper hand. However, given where price action is set to open, it has become more about where support is; price action must hold rare major four-star support at….