Chart of the Day - Monday, January 6, 2025

🏆 Today's Chart of the Day was shared by Matt Weller (@MWellerFX). 
 

• The bull market's poster child, Nvidia ($NVDA), closed at an all-time high for the first time in two months today, rising +3.4%. It's nearly the largest in the S&P 500 again, closing slightly below $AAPL's market cap. 
   
• $NVDA has surged +11.3% over the past three sessions, marking its best three-day rally since September. Today's breakout invalidates a three-month Head & Shoulders Top. It's often bullish when bearish patterns fail. 
   
• If $NVDA rallies, the major averages (Dow, S&P 500, Nasdaq) will likely follow to all-time highs. However, this could turn into a nasty Bull Trap if $NVDA violates its post-election highs ($148) on a closing basis this week. 
   

The Takeaway: $NVDA broke out to record highs for the first time in two months today. However, it must respect its post-election highs this week ($148) to avoid a Bull Trap.