We’re Close to Positive Strength (But Trump…)

We got excited for a minute... and then institutions sold into strength.

Action to Take: Nvidia is ready to give us a clear read on today's market direction. After breaking its post-election downtrend yesterday, NVDA is up another 2.5% pre-market following CEO Jensen Huang's packed lineup of AI announcements at CES last night in Las Vegas. For the previous two years, Nvidia has been our most reliable market bellwether - when it runs, the market tends to follow.

Conversely, if institutions fade this morning's strength instead, expect another leg lower. With Friday's jobs report and next week's CPI data heavily influencing Fed monetary policy, institutional players could be looking to reduce risk ahead of these key catalysts rather than chase tech at current levels.

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Momentum: Tech stocks continue to drive gains as chip names enjoy fresh AI optimism, pushing the Nasdaq up 1.2% while the S&P 500 added 0.5%. Monday's trading saw the highest buying pressure since September on elevated volume for the S&P. However, the S&P 500 pulled back…