Tesla: Here Comes Your Throwback Test

After Tesla earnings last night, the resurgent momentum darling is coming back down to roughly the scene from which it broke out earlier this month. 

On the zoomed-out daily chart, below, note the down-sloping light blue line, stretching back to 2015, which kept a lid on the high beta, controversial stock for a good while. But with Tesla bulls back at the helm of late, the issue now is whether this earnings sell-off is a buying opportunity. 

In resolving that issue, we understand that retracting, or checking back, or "throwing back" to the scene of the breakout is a fairly common occurrence and not inherently bearish. That $250 level appears to have been a significant one for TSLA for quite some time--Even dating back to 2014. 

Thus, in the coming sessions after this earnings hiccup we want to see if some strong hands step in stabilize price and eventually turn the name back higher, even if Tesla marginally undercuts $250 at some point. 

In a similar vein, high beta chip winner NVDA is now cementing a bit more of a pronounced pullback off recent highs.

As a result, we look to see if bulls can sustain rotations to other stocks and sectors to offset this early Nasdaq weakness, something we have seen a good deal of lately but also not something to complacency assume will persist.