5 Things I’m Watching This Morning 8/24/23

1. Premarket Thoughts: After Wednesday’s close, NVDA gapped up after reporting another very strong quarter. That sent Nasdaq futures a slew of tech stocks higher. The key now is to see if it closes higher and we continue to rally. At this point, the bulls want to see the major indices close above their respective 50 DMA lines this week. If we can close above that level by Friday that will be a bullish sign. Conversely, if the market rolls over here then the 50 DMA line will become resistance (a.k.a. the market will hit a wall there) and then we can roll over. Last Friday’s low is near term support for all the major indices.

2. Weak Follow-Through Day: Wednesday was a weak follow-through day. The Nasdaq 100 (QQQ
QQQ
) was the only index that scored a FTD. The Nasdaq Composite did not because volume was lower than Tuesday’s session. The other indices did not rally over 1.5% on Wednesday. That doesn’t mean that this rally attempt will fail. It just means that it is a weak FTD.