CNBC’s Jim Cramer said Wednesday that the charts show the bull market could move higher if the tech sector continues to perform well, especially the stock of index leader Nvidia.
“Jessica Inskip’s interpretation of the chart looks very good for the S&P, the Nasdaq 100 and, of course, Nvidia,” he said. “We’re in a much broader bull market than we were six months ago, but for it to continue we need meaningful participation from technology companies,” Inskip said.
The tech industry may no longer need to “lead the way,” but it still needs to “at least follow the leaders,” Kramer said. He added that the sector should not behave like it did on Tuesday, when semiconductor stocks slumped after ASML’s weak earnings report wiped more than $50 billion off the semiconductor company’s market capitalization.
To illustrate Inskip’s analysis, Cramer looked at charts of the weekly performance of both Nvidia and the Nasdaq 100 since last fall.
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Inskip said the Nadak 100 index, which includes some of the market’s biggest tech stocks, is still in a bullish trading cycle but hasn’t hit new highs like the S&P 500. The index is heading in the right direction, Inskip said. But to help the market recover, it will need to break out of the highs from July.
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Similarly, Inskip has a bullish background when it comes to Nvidia stock, Cramer said. Cramer said the stock is in a “bullish consolidation pattern” and is rising after processing the gains of the past few years. Inskip said he sees upside if Nvidia’s price can break above $140.
“She thinks Nvidia is the most important stock in the market. If it can go higher, that’s all that matters,” he said. “Me? I’ve never bet on a great Jensen fan.”
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