Stocks: Profit-Taking Ahead of Summer?
Some major indexes, including Nvidia (NASDAQ:NVDA), finished Monday lower, indicating we are still in at least a short-term risk-off environment. However, the US dollar is not rising despite the lower S&P 500. One reason could be the sideways price action on yields. This kind of slow price action and divergence between major markets is typical during the summer, and it’s uncertain if we’ll get any significant catalysts for movement here, but the market might focus on inflation figures from Canada, US consumer confidence and US housing data tomorrow. Looking at the Dollar Index, there are still some nice intraday reversal down from the 78.6% Fibonacci level, so I still think there could be deeper prices in the near term, even if it’s just a correction. Prices could retrace to 105.15, the lower side of the trading channel.
Nvidia in a correction
