Market Pullback: S&P 500 Buying Targets & Why the Selloff Was Expected (NVDA, TSM, COHR Analysis)

**Market Pullback: S&P 500, Nvidia (NVDA), TSM, & Coherent (COHR) Technical Analysis | End-of-Year Rally Strategy**

The massive market selloff on Friday was technically expected, as the market was **overbought** and set up for a pullback. The news regarding the Trump and China trade fight served only as the catalyst. I expect the market to rally through the end of the year, but we first need to identify the crucial buying opportunities.

In this video, I (Kevin McCormack of Big Picture Investing) dive into the charts to analyze the S&P 500 setup, Nvidia, Taiwan Semiconductor, and Coherent, detailing where we may want to start buying this market.

**Key Takeaways & Technical Analysis:**

* **Buying Exhaustion:** The pullback was clearly indicated by **demark indicators** (combo and sequential sell setups) on the S&P 500 weekly chart, showing levels of extreme exhaustion from a buying perspective.
* **Seasonal Pattern:** From a seasonal perspective, the market is right where it should be forming the bottom to start the **end-of-the-year rally**. We could see an additional pullback this week before making our move higher.
* **S&P 500 Targets:** If you are looking to get long in the S&P 500, initial levels for a good buying opportunity are near **650** (specifically 65031). If we fall further, the level 62665 (or 626) is identified as an important level.

**AI Stock Focus & Trade Opportunities:**

* **Nvidia (NVDA):** We review a setup similar to the S&P 500. This pullback could be the gift AI stock investors have been waiting for. I am targeting adding to my position initially around the **179 level**. If the stock falls further, the 170 area is predicted to be a great opportunity to add to Nvidia ahead of its earnings (due in about six weeks).
* **Taiwan Semiconductor (TSM):** The TSM chart also showed buying exhaustion (combo 13 indicator) on a weekly basis. TSM is reporting earnings this Friday, which will serve as a nice **leading indicator on the AI buildout**. If TSM reports blowout October revenue, it suggests heavy production matching orders, which is very good news for Nvidia and the AI trade in general.
* **Coherent (COHR):** Coherent is one of my favorite AI plays, vital for the data transceiver market in the AI data center buildout. If we see market follow-through this week, Coherent could pull back into the **103-104 area**, which is a great opportunity to add to or start a new position in the stock. This pullback and consolidation should precede a push back through its all-time highs.

We have about two weeks for China and Trump to work things out before the 100% tariffs are scheduled to go into effect on November 1st.

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**TIMESTAMPS**
0:00 Introduction: Market Selloff & Expected Rally
1:35 Seasonal Pattern & Bottom Forming
2:30 S&P 500 Weekly Chart & Buying Exhaustion
3:35 Daily S&P 500 Targets & Propulsion Indicator
4:45 Nvidia (NVDA) – AI Stock Pullback Targets
6:05 Taiwan Semiconductor (TSM) Analysis & Earnings Preview
7:45 Coherent (COHR) – Technical Setup & Buying Opportunity
9:15 Conclusion & Trading Outlook
Good luck with your trading!

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Видео Market Pullback: S&P 500 Buying Targets & Why the Selloff Was Expected (NVDA, TSM, COHR Analysis) канала Big Picture Investing With Kevin McCormick