Nvidia earnings enhance the S&P 500. What’s subsequent?

Nvidia reported earnings yesterday after the close and not surprisingly it beat expectations across the board. We saw a rally in the S&P 500 futures as a result given the big weight of Nvidia on the index. The downward spike triggered by the FOMC minutes was clearly a dip-buying opportunity since there was nothing new there.

On the 1 hour chart, we can see that the S&P 500 broke out of the recent consolidation and the buyers are now stepping in around the resistance turned support. Today, we get the US PMIs and jobless claims figures which might trigger another downward spike.

In such a scenario, the dip-buyers will likely step back in around the 5306 level (unless the data is recessionary). The sellers, on the other hand, will want to see the price breaking below the 5306 level as that should open the door for a correction into the 5217 level.