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The S&P 500 Holds the Line, For Now

The S&P 500 threatened to break below the middle Bollinger Band on Monday’s gap down but managed to recover with a strong intraday reversal. Even in yesterday’s stronger session, the index bounced right off that middle band intraday, a clear sign that this level is acting as key support.

Historically, when the S&P 500 drops below the middle band, it often gravitates toward the lower band. Right now, that puts key levels at 5,994 (middle band) and 5,819 (lower band).

For now, patience may be warranted as long as the index holds above this critical threshold. A sustained break below could open the door for a deeper move.

Nvidia Cling to Key Support

Like the S&P 500, NVIDIA is battling to hold a critical technical level. However, in this case, it’s sitting right on the lower Bollinger Band on the weekly chart.

NVDA opened this week below that level but has since rallied back above it, reclaiming key support. Historically, a sustained break below this lower band at 120.50,it can lead to more significant downside moves, just as it did in 2022.

Back in Fall 2023, NVIDIA dipped below the middle Bollinger Band but managed to find support at the lower band, setting the stage for another rally. This time, holding the lower band will be crucial in avoiding further downside pressure.

If it holds, it could stabilize. If it breaks, the chart suggests more room to fall.

Bitcoin: A Different Perspective on Price Action

Bitcoin’s price moves can seem extreme, sometimes exhilarating, and sometimes unnerving. But what if we’re looking at it the wrong way?

A standard price chart can exaggerate volatility, making Bitcoin’s swings appear more dramatic than they actually are. A logarithmic chart, on the other hand, normalizes these moves and reveals something interesting: Bitcoin is trading within a channel.

On this scale, the uptrend remains intact, but the upper and lower channel boundaries will be key indicators for Bitcoin’s next major move. A breakout could signal acceleration, while a breakdown might suggest a cooling-off period.

It’s a reminder that perspective changes everything, and in investing, the way we look at data can shape our decisions.

Disclaimer: Advisory Services offered through Sykon Capital, LLC, a registered investment advisor with the U.S. Securities and Exchange Commission. This material is intended for informational purposes only. It should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney or tax advisor.  The information contained in this presentation has been compiled from third party sources and is believed to be reliable as of the date of this report. Past performance is not indicative of future returns and diversification neither assures a profit nor guarantees against loss in a declining market. Investments involve risk and are not guaranteed.

Shared content and posted charts are intended to be used for informational and educational purposes only. CMT Association does not offer, and this information shall not be understood or construed as, financial advice or investment recommendations. The information provided is not a substitute for advice from an investment professional. CMT Association does not accept liability for any financial loss or damage our audience may incur.