NVIDIA Beats, Markets Bounce—Now the Real Test Begins
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E-mini S&P (June) / E-mini NQ (June)
S&P, yesterday's close: Settled at 5902.75, down 31.50
NQ, yesterday's close: Settled at 21,379.75, down 80.75
What an eventful evening. NVDA reported a terrific quarter, topping adjusted and unadjusted earnings estimates, despite the H20 charge-off, and revenue at $44.1 billion versus $43.3 billion. Most importantly, they guided revenues for the current quarter in line at $45 billion, notwithstanding the China restrictions. Additionally, CEO Jensen Huang pointed to the hundreds of thousands of GB200s Microsoft will ramp up to deploy with OpenAI; all hyperscalers will follow.
Next, a court ruled to block President Trump's reciprocal tariffs, saying he had superseded his powers. This will be an evolving situation; E-mini S&P and E-mini NQ futures ripped higher, but have settled in ahead of the opening bell.
E-mini S&P traded to a high of 6008 and E-mini NQ 21,858, testing just shy of our upside target we discussed yesterday, 'Although a breakout above the May 20th highs should provide a significant bullish tailwind, we cannot ignore strong overhead resistance in the E-mini S&P and E-mini NQ at 6019.50-6040.50 and 21,916-22,000.' As prices settle in this morning, it will be critical for a response to the supports listed below. Under no circumstances do we want to see the E-mini S&P break major three-star support at……
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