(Reuters) - Chipmaker Nvidia Corp said on Tuesday it has suspended self-driving tests across the globe, a week after an Uber Technologies Inc autonomous vehicle struck and killed a woman crossing a street in Arizona.
Shortly after the headline hit NVDA tanked and people started selling everything.
SPX tested below yesterday's low, but bounced. Breadth was -66%. New highs increased a bit to 37. New lows were down considerably to 124. Volume was heavier then yesterday. We had three fairly high volume down days out of four. Not exactly the classic three day mini cascade, but it might work similarly.
The futures came close to the 20 SMA before turning down. They ended the day back outside the channel. There was a 17 point bounce off the low into the close. That shows there was some buying interest down there.
I have seen some short term bottoms very similar to the daily chart. The key is that the bulls need to show up again tomorrow. If we continue down a test of the Feb. intraday low seems likely. Yesterday felt like a concerted effort by bulls to make a bottom. Today's selling seemed to be connected with the NVDA news. That probably would not change the mind of bulls intent on making this a bottom. COMPX and R2000 both undercut their Friday lows. I think SPX was close enough to its low to constitute a test. That makes a possible short term double bottom in conjunction with the daily chart double bottom. If the bulls show up the odds would seem to favor a tradable bounce from this pattern.
Bob
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