DailyBubble News
DailyBubble News

SPY ETF Reaches Record High Amid Nvidia-Fueled AI Rally—Key Chart Pattern to Watch

The SPDR S&P 500 ETF Trust reached a record high on Thursday, driven by a surge in AI-related mega-cap stocks following Nvidia’s strong earnings report. The ETF includes key players like Microsoft, Broadcom, and Advanced Micro Devices, all of which saw gains during the rally. Synopsys, a chip-testing software company, also experienced a significant jump in stock price.

While tech stocks led the way, the overall market saw gains across all sectors except utilities. This suggests that the current bull run may not be solely dependent on the Magnificent Seven tech giants, which hold a significant portion of the SPY portfolio. Nvidia, in particular, is a top holding in the ETF.

After a dip below the 200-day moving average in October, the SPY has rebounded strongly, forming a rising wedge pattern. Trading volumes have tapered off as the fund hit record highs, indicating some uncertainty among investors.

Looking ahead, a breakout above the wedge pattern could signal further gains, while a breakdown could indicate a potential correction in the market. It’s important to note that the views expressed in this article are for informational purposes only, and the author does not own any of the mentioned securities.

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