Nasdaq rebounds: Nvidia (NVDA) earnings beat ends AI winter fears

The narrative of an "AI investment winter" coming to an end has been a terrifying prospect for stock aficionados, casting a long shadow over the beginning of the month.

After the data-blackout from the US Government, markets were increasingly jittery, spooked by a a lack of public information, not-so-great private reports and gloomy foreshadowing from industry titans like the Nvidia CEO and OpenAI CFO.

But Nvidia (NVDA) flipped the script entirely, and the market is loving it:

Talk about a beat on earnings: the numbers were stellar, but the forward communications were even more ecstatic with some $500 Billion of AI-Chip investment expected next year from the Semiconductor giant, dispelling fears of a peak in AI Investment.

You can access the entire earnings report here if interested.

The most valuable company in the world is already heading back just below the $200 mark (trading around $191.90 after-hours), dragging the entire tech sector out of its sentiment-slump.

Combine this with the strong Jobless Claims report and the long-awaited September NFP number, and the signal is clear: the US economy is not done growing yet.

As explained in our Market analysis yesterday, the Nasdaq failed to break concrete lows, formed a sturdy technical base (a triple bottom), and is now flying higher on renewed stellar momentum and sentiment.

The only remaining hurdle will be to see if the hawkish Fed repricing—confirmed by yesterday's Minutes—doesn't step in to cap this renewed euphoria.

Let's dive into a multi-timeframe analysis for the tech-heavy and back-on-top Nasdaq.

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Nasdaq just broke a 19-day streak with descending price action with a powerful daily candle forming a bullish engulfing after the fake out lower from the weekly open.

Still evolving within its descending channel, the rebound is still young but looks powerful in the current state.

Daily RSI is just reaching the neutral zone, which bulls will have to breach to put back momentum into their hands.

Currently breezing through the Daily Pivot zone between 25,000 to 25,250, the buying is steep but there are a few technical hurdles left:

Keep an eye on the top of the descending channel around 25,300 and the 4H 200-period MA (25,245).

Let's take a closer look.

Nasdaq technical levels of interest:

Resistance Levels

• Mini-resistance at 25,500 Gap
• intermediate resistance 25,700 to 25,850
• All-time high resistance zone 26,100 to 26,300
• Current Pivot 25,000 to 25,250 (Breaking)
• Channel highs 25,300 to 25,350

Support Levels

• 24,325 Session lows
• 24,500 Main support (testing)
• October low support just around 24,000
• Early 2025 ATH at 22,000 to 22,229 Support

Now evolving in a short-timeframe upward channel from its breakout, some profit-taking is occurring right around the top of the Pivot Zone at a confluence with the 4H MA 200 after a 1H RSI bearish divergence.

The session highs are at 24,235 and will have to be breached by bulls in order to keep up their chance at coming back to their all-time highs.

Momentum is swift but today will be a huge test to Buyer sentiment in Market.

Failing to re-enter the upward channel may bring darker times ahead; the session close will be very important.

Safe Trades!

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