NVDA’s shares are slightly higher after a lukewarm response to yesterday’s earnings and outlook. Shares popped up to tag the .786 Fib retracement in the after-hours, but quickly fell back to where they had closed. Who knows if the H&S pattern will play out. But a tag of the SMA200, currently at 174, seems a foregone conclusion.

4Q revenue grew 73% and the first-quarter outlook beat estimates. But concerns remain over a perceived bubble in AI processors fueled by circular financing, where the company lends money to AI startups and cloud providers (e.g., OpenAI, CoreWeave), which then use those funds to purchase NVDA’s GPUs.

Although the company vigorously denies it, investors (and short sellers) believe the practice creates artificial revenue growth and demand. Shades of Enron…

When the company whose market cap is 8% of the S&P 500 sneezes, it’s no surprise that futures seem to be catching a cold.

It’s an important session for stocks, at least so far as SPX’s RSI is concerned.