Nvidia and Semiconductors ETF: Beware of Bearish Engulfing Patterns!

Nvidia (NVDA) has significantly outperformed the S&P 500 in 2024, up about 77% year-to-date through last Friday vs. the S&P 500 which was up only 8%. But by the end of last week, NVDA dropped the infamous “bearish engulfing pattern”, suggesting short-term distribution and a bearish setup into this week.  This two-bar reversal pattern, which signaled not only for Nvidia but for the Semiconductor ETF (SMH) as well, indicates a shift in short-term momentum. Strong selling pressure after a higher open “engul ...