Market Prep: Are Industrials, Energy & Staples Still a Good Hold?

NVDA PM IWM NDX SPX XLI XLP XLE

Hi everyone,

The SPX finally reclaimed its 10 and 20 DMA, we are back in business. As we anticipated on Sunday, a major move was coming this week, and fortunately, it broke to the upside.

NVDA is currently flat in after-hours trading despite a beat. This suggests the broader market may not see a massive secondary surge from this report alone. We face heavy resistance near 6,950; we need to clear that level to trigger a breakout toward new ATH near 7,130. Until then, expect the “chop” to continue.

Our suggested trades are performing well as capital rotates out of Consumer Staples (XLP) and back into Tech. While XLP was a solid hideout during last week’s volatility, the momentum has clearly shifted.

NDX Levels

We are in a short term uptrend above 8 and 20DMA but still below 50DMA which will clear above the 25,340 supply. After that we can go much higher towards 25,930. We have cluster of support below at 25,200 and 25,120.

Keep an eye on the 10-year Treasury yield (US10Y) if it stays stable or drops, the rotation into Tech will have more room to run. If yields spike, the Tech rally could stall at the 6,950 resistance.

We shared this link in the chat but again, here are our currently opened trades: