SPX, NDX Close Lower ahead of NVDA EPS...Sectors Move Lower...After-hours: NVDA, CRM Rally on Positive EPS Reaction...Trade Court Rules Against Reciprocal Tariffs...

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After the close a U.S. Trade Court voided reciprocal tariffs saying the administration had overstepped his executive authority.  Futures rallied more than 90 points after the news.

SPX -32.99, 5,888, opened flat after a very strong Tuesday, rallied for about 15 minutes before trending lower.  Fed minutes at 2 pm ET were a non-event, but the SPX had one final leg down ahead of NVDA and CRM earnings after the close.

After-hours: NVDA +6.59, +4.89% and CRM +3.65, +1.32% on positive earnings reactions. Semiconductor stocks also rallied.

The DJI, 42,098 -0.58%, closed lower.  The NDX -0.45% was a pause day after a bull flag bounce. 

Breadth weakened as decliners led on the exchanges and in the indexes.  Net change declining capital was higher than net change advancing capital.

Wednesday Session Insight: NVDA report today after the close.  We don’t know what the outcome will be beat or a miss.  If it is a miss other semiconductor short dated, 30 May, option trades could drop and not have time to recover.  Evaluate correlated short, dated positions to see if you are comfortable with the risk you have.  And yes, if the earnings reaction is positive your semiconductor positions should likely gain from the positive reaction.

TSLA -5.99, -1.65%, red candle pause day in a bull flag bounce.

Mega caps AVGO, META, AAPL rose and GOOGL, NVDA, AMZN, MSFT, TSM, BRK/B, TSLA fell on Wednesday. 

SPY down 3.42 at 587.73, 65.5 million shares, average volume

VIX up .35 at 19.31,

QQQ down 2.31 at 518.91

UNH, BA, V, AAPL led the DJIA, 4 advancers, -24

FICO, WBD, GEV, HOLX led the SPX, 81 advancers,

WBD, APP, DXCM, AVGO led the NDX, 23 advancers,

Up:

Down: QQQ, DIA, SPY, IWM,

The SPY MFC green line is pointed down at 88.6 and is counter-trend defensive. -1.3

Ten of eleven sectors were lower, and one was unchanged on Wednesday.  The least negative sectors were XLRE, XLC and XLK. 

Uptrend sectors: XLI, XLU,

Neutral sectors: XLK, XLP, XLRE, XLF, XLC, XLY, XLE, XLB,

Down trend sectors: XLV,

The 6-month intermediate trend is sideways.  The ten-day trend is sideways.

3-month Intermediate Term Market Trend:  Sideways

3-day Short Term Market Trend:  Up

23 of 100 NDX stocks closed higher on Wednesday.

77 NDX stocks are above their 30 DMA: COST, CRWD, CTAS, MNST, PLTR, MELI, NFLX, ADSK, AXON, BKNG, CDNS, IDXX, TTWO, CEG, INTU, ZS, ABNB, ADI, AMAT, ANSS, ARM, AVGO, DDOG, DXCM, ISRG, KLAC, LRCX, MAR, MCHP, MDB, MSFT, SNPS, TSLA, TTD, CHTR, PYPL, CDW, ADBE, HON, NVDA, PAYX, VRSK, ADP, AMD, CTSH, GFS, AMZN, APP, ASML, CSCO, META, MU, NXPI, ROP, ON, CSX, GEHC, LULU, QCOM, TXN, MRVL, ODFL, WBD, DASH, BIIB, CMCSA, FAST, FTNT, GOOGL, PCAR, LIN, REGN, AZN, GILD, PANW, SBUX, AMGN, MDLZ, CCEP,

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 1

CCEP,  

Moving Below 30 DMA = 4

BKR, CDNS, FANG, SNPS,

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