Two chips stocks may signal the path forward for the market, says NYSE insider Jay Woods
The Freedom Capital Markets chief market strategist is watching Nvidia and Broadcom to see where the S&P 500 could go next.
TL;DR
- The S&P 500 is holding at 7,600 but has made a lower high, indicating a coiling market.
- Nvidia needs to break through $235 to signal a potential leg higher; failure could lead to stagnation between $220-$230.
- Broadcom must hold the $350 support level; a break below could send it to $320-$325.
- Investors are watching August producer and consumer price index data for inflation clues.
- Adobe's earnings will be key to see if its recent rally has room to run, with $250 as a support level to watch.
- Oracle's debt issuance and ability to quell trader nerves could push its stock above its 200-day moving average of $168.