This year we have seen a strong rally in stock markets, with the Nvidia stock leading the way. The NVDA stock price almost doubled in value until Friday last week, when we saw a harsh reversal lower, as traders and investors booked profit, sending the S&P 500 more than 2% lower.

Nvidia H4 Chart – Buyers Coming Back Quickly

Today the future markets opened with a small bearish gap lower, with European indices trading flat after the bearish opening. US Stock markets are looking slightly better, as they seem to be trying to gather some buying momentum. Nvidia shares were the hardest hit last Friday, but today it is showing resilience once again, with traders who were left out jumping in after the pullback.

So, the focus is on Nvidia shares once again after experiencing a significant reversal on Friday, after the stock price approached $1,000. In pre-market trading, Nvidia shares fall by 0.7%, leading to a gap down at the opening. The broader market sentiment, as indicated by S&P 500 futures, is also negative, with futures down by 0.4% following a 33-point drop on Friday.

S&P 500 H4 Chart – MAs Are Helping Provide Support

Similarly, Nasdaq futures are trading 0.5% lower, reflecting the overall cautious sentiment in the market. However, the sentiment is improving and the decline in Nvidia shares and the negative trend in futures markets suggest that investors may be looking to resume the bullish trend after some profit-taking.

S&P 500 Live Chart