On his YouTube channel, José Luis Cava reviews the latest stock market movements, focusing on Nvidia or Bitcoin, and analyzes the relationship between the two values.
José Luis Cava comments that although yield curve inversion is usually considered a classic indicator that predicts the economy will enter a recession, it did not work this time, as the US economy accelerated. “The lesson I learned from the mistake is that it is not enough to look at one piece of information, but you must have a broader vision. It will be necessary to look at the labor market or the financial sphere. Industrial activity has contracted, but the economy as a whole has not contracted.”
Now, express it High inflation actually tells us that the US economy is strong. Looking at retail sales, it indicates that consumption in North America remains strong. “There are some signs that the periphery of consumption is weakening. But those signs, in my opinion, do not get to the core of consumption. So, consider The US economy is likely to remain strong in 2024.
On the other hand, the situation in the Middle East caused a bearish reaction in stock markets, but the expert points out that no significant support was broken. Focusing on NVIDIA, he points out that it has been on the rise since December 2023.
“It took the most recent uptrend to reach its maximum around March 4, and from there it fell. This means that Nvidia, which has been the driving force behind the S&P 500's rise since March 4, has stalled.
As for Bitcoin, he points out that it rose strongly and stopped on March 11, which Cava explains that it is “clearly” noticeable that Nvidia’s stop brought with it the stop of the entire market, and also led to the stop of the market. Bitcoin.
Bitcoin is now moving above the 60,000 level, but it is in a sideways move, and when it comes out of it, “I think it will probably break it to the upside, but right now it is in a sideways move and respecting the price support. The 60,000 area.
Already in the S&P 500, the 5,134-5,100 area support was broken yesterday and moved to the 5,040 area. “During the entire session it moved sideways, and despite Powell’s speech and intervention, there was absolutely nothing going on, it simply moved sideways above 5040.”
Guitarists are in control, Cava explains Only beating the resistance at 5,130 would indicate a bounce.
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