Oversold: Why a Relief Rally Looks Likely

Nvidia’s earnings were strong, but the market reaction? Underwhelming. When great news doesn’t spark a rally, it’s a red flag—was the AI trade already priced in?

• Markets Still Weak – Nasdaq & S&P 500 down for the fourth straight session. $PLTR -13% this week, $TSLA -8% yesterday, $META slipping.

• $NVDA Beats, But No Big Move – Revenue, earnings, and guidance all topped estimates, yet no major upside follow-through. Peak expectations?

• $QQQ at Key Support – Holding its rising 20-EMA & POC. A relief rally is possible, but if it fails, the next real support is much lower.

• Midcaps & Small Caps Holding Up – $MDY & $IWM testing 50-EMA, showing signs of demand. Reversal potential growing.

• Extreme Fear = Contrarian Opportunity? – Sentiment is overwhelmingly bearish. Jason Shapiro’s strategy: when everyone leans one way, look the other.

Relief rally or deeper breakdown? Market at a decision point.

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