NVDA Defends 20-Day as Tech Absorption Outshines PPI Jitters

The tape showed significant resilience during the New York session, specifically in the Mag7 complex. After an initial shakeout following the PPI print, NVDA saw a high-conviction bid at the $118 level, sparking a squeeze that dragged the QQQ back into the green. Order flow indicated heavy institutional absorption near the open, suggesting that the 'buy the dip' mentality remains the dominant regime for large-cap tech despite simmering rate concerns.

Small caps lagged as the IWM failed to clear its morning range, pinned by a spike in the 10-year yield. Traders who tried to fade the initial tech strength were caught in a slow-grind short squeeze into the European close. ARM and TSLA provided the best volatility for momentum scalpers, with both tickers printing clean bull flags on the 5-minute chart before breaking to session highs in the early afternoon.

Energy names saw a late-day bid as crude stabilized, but the real story was the intraday reversal in TLT. The bond proxy found a floor mid-session, providing the necessary air cover for equity bulls to push the SPY toward a test of the 5,550 level. Expect a quiet overnight session as the market digests today's range, but watch for a gap-and-go scenario if the Asian session maintains this bid.

Today's edge: Today’s edge: Spotting the massive dark pool blocks in NVDA before the afternoon squeeze was only possible via StocksLeak.