US stocks indices snap 2-day up streak. Nvidia/chip stocks tumble

The broader US stock market snapped a two-day win streak, leaving the major indices modestly lower for the week with one session remaining. The Dow is down -0.26%, the S&P is down -0.01% and the Nasdaq is down -0.03%.

For the day:

• Dow industrial average rose 17.05 points or +0.03%
• S&P fell -37.27 points or -0.54%
• Nasdaq fell -273.69 points or -1.18%

The focus, however, was squarely on Nvidia.

The company delivered better-than-expected earnings and raised guidance after the close yesterday. Shares initially popped in after-hours trading, but the upside momentum quickly faded. By the end of the session, the stock was closing near the lows of the day at $184.32.

There was market chatter about significant options exposure at the $200 strike, and once upside momentum stalled, that positioning appeared to amplify the selling pressure.

From a technical perspective:

• Yesterday’s high reached $197.63

• That high closed within a key swing area between $195.56 and $198.73 (see the higher yellow area on the chart below)

• The subsequent decline pushed the price back below:

  • 100-hour MA at $188.45

  • 200-hour MA at $186.80

The move also returned the stock toward the midpoint of the broader trading range between $164.22 and $198.73, a range that has largely contained price action since mid-July.

While the stock did break above that range from the end of October to early November to print new all-time highs, momentum faded quickly. By November 10, the price had fallen back below that upper extreme range and has struggled to regain sustained upside traction since.

Bottom line:

Strong earnings were not enough to overcome positioning and technical resistance. The rejection near the top of the range keeps the stock trapped in consolidation, with momentum now tilted back to the downside unless buyers can reclaim the key moving averages. Although the market commentary is mostly bullish for the companies prospects, the price action and the tools applied to it, needs to support that story. With the stock below the 100/200 hour MA, the bias is negative until those MAs are broken.