US Stocks Nearing Inflection Points Ahead of Key Economic Events
US stocks face a potentially volatile period as investors look ahead to several key economic and monetary-policy events. The upcoming inflation data, the Federal Reserve's rate decision, and the subsequent market reaction could all influence market direction, particularly with major indexes approaching important technical support levels.
Nvidia (NVDA) has returned to its highs around May but questions have been raised about whether the stock has enough momentum to break through that resistance. After reaching the area, the stock produced two weak candles, including one with a long upper wick that signaled rejection of higher prices, followed by a strongly negative session.
Meanwhile, AMD (AMD) currently offers an interesting technical setup among the five stocks mentioned. The stock had been trapped in a lateral range, with the 70-day moving average acting as an important level. A deeper decline toward $450 could have confirmed the bearish divergence between price and RSI and raised the risk of a larger correction.
Apple (AAPL) provides an example of how a price gap can influence the technical outlook. The stock previously developed a clear divergence between price and RSI between July 16 and July 28, followed by a sharp correction toward the 70-day moving average. However, the gap created during the July 31 decline, around $330, has become an important reference point.
Nike (NKE) remains a more difficult short-term setup, with the stock continuing to deteriorate gradually rather than producing a sharp capitulation move. The daily RSI currently stands around 36.87, compared with approximately 36.63 during the previous decline. This could suggest a potential bullish divergence.