It's the Jacket

As it turns out, NVIDIA CEO Jensen Huang's famous black leather jacket could not spawn another epic earnings gap higher this time around for the monster AI name. Instead, NVDA is down by more than 5% as I write this, with the semiconductors as a sector leading to the downside all session long. 

In addition, the second largest SMH ETF holding by weight is TSM, below on the daily chart. Taiwan Semi is confirming the highlighted bearish "diamond top" lower, as selling permeates throughout the sector beyond NVIDIA. 

On that note, we have seen countless whipsaws and violent intraday swings today and this week. Typically, this is bearish price action and indicates buyers losing their grip on the long-term uptrend.

However, the endless liquidity punch bowl from The Fed and then the Treasury over the years has seemingly counteracting classical bearish signals. So, in essence, one must continue to probe whether we truly are in a new regime (as even Steve Cohen himself suggested recently) of dwindling liquidity given a more austere Trump White House. 

Indeed, tomorrow morning's PCE inflation data should give insight as to how truly trapped The Fed may be Powell finally sees the "stag" plus the "flation" this time around.