What Happens If We Take Out the 20-DMA? (2/26/24)

Nvidia earnings did extremely well, jolting the entire market higher by 2% on Thursday, and momentum carried the S&P higher on Friday, closing at an all-time high. So how does a company like Nvidia guarantee growth in a company like VISA? Call options on stocks are reaching very high levels, investor sentiment and exuberance are also at very high levels; positioning by portfolio managers is very long on equities. This is not a bad thing within this momentum-driven cycle, there is nothing wrong with markets, so no reason to be overly-bearish. Until we violate the trend line at the 20-DMA, there is not much with which to be concerned. Markets remain over bought, and additional upside is going to be a challenge. The key thing for risk management is what happens if we take out the 20-DMA, which potentially sets up for a bigger contraction. Have we been here before? Hosted by RIA Chief Investment Strategist, Lance Roberts, CIO  Produced by Brent Clanton, Executive Producer ------- Articles mentioned in this report: "Don’t Fear All-Time Highs, Understand Them" https://realinvestmentadvice.com/dont-fear-all-time-highs-understand-them/ ------- Get more info & commentary:  https://realinvestmentadvice.com/insights/real-investment-daily/ ------- Watch the video version of this report by subscribing to our new "Before the Bell" YouTube channel:  https://www.youtube.com/watch?v=tU8I7FSiYOk&list=PLwNgo56zE4RAbkqxgdj-8GOvjZTp9_Zlz&index=1 ------- Visit our Site: https://www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to SimpleVisor: https://www.simplevisor.com/register-new -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #InvestingAdvice #MagnificentSevenStocks #NVIDIA #VISA #SP5000 #BullishMarketTrend #NegativeDivergence #RelativeStrength #20DMA #Markets #Money #Investing