Walmart Delivers but the Fed, Home Depot, and Nvidia Earnings Spooked the Market.

Plus - Updates on Open Trades.

Stocks limped into a post-holiday Tuesday with Walmart (WMT) delivering a nifty earnings beat but Home Depot (HD) didn’t - barely meeting lowered expectations and further lowering its future guidance for the fiscal year.   Traders were already jittery ahead of the FOMC minutes, and the upcoming earnings for Nvidia (NVDA), both due out on Wednesday.

The price chart for NVDIA speaks for itself as the stock dropped like a stone ahead of its earnings.  Accumulation/Distribution (ADI) and On Balance Volume (OBV) may have topped out.

The S&P 500 (SPX) gave up its lofty perch above 5000 and may be headed for a test of its 50-day moving average near 4950.

For its part, the New York Stock Exchange Advance Decline line (NYAD) is holding up better than one would expect, given the movement in SPX.  Of course, NYAD is not a weighted index, as is SPX. In other words, much of the damage in SPX is due to weakness in HD and NVDA along with other large cap stocks which are being sold.

The U.S. Ten Year Note yield (TNX) remained above the 4.15% area, but has slithered down some, and could be headed back below 4.25%. This may or may not be a meaningful move as I expect a more aggressive response after the FOMC minutes are released

The Numbers to Watch

Keep an eye on the U.S. Ten Year Note yield area between 4.2 and 4.3%.  Moves above or below these key yields could spark trend changes in SPX.  For SPX, support remains at 4800-4950.