The S&P 500 stayed rangebound near 7,600 for a month, and Freedom Capital Markets strategist Jay Woods says Nvidia and Broadcom now hold the clues to where it moves next. Nvidia faces resistance at $235, Broadcom must defend $350, and inflation data due later this week could tip the balance.
The S&P 500 held key support around 7,600 and 7,620 last week, a level Woods called encouraging for the broad index. But its rebound to just under 7,750 marked a lower high than the index's Aug. 13 closing peak of just under 7,800, leaving the market stuck in what Woods described as a coiling pattern.
Oil spike pressures the broad index
Oil prices jumped Monday after Houthi militants targeted Saudi Arabian energy facilities, helping send U.S. equities lower. Still, the S&P 500 held the 7,600 level while falling a little less than half of 1% at midday.
Nvidia tests a critical ceiling
Woods is now watching two semiconductor stocks for direction. Nvidia rallied to $230 last week, its highest price since mid-May, but failed to clear the $235 level that marked its most recent high. That pattern could form a double top, and Woods said a break above $235 could open the next leg higher, while a failure may leave the stock stuck between $220 and $230.
Broadcom traded lower last week after reporting earnings, yet held a key support level of $350. According to CNBC: "That won't help the overall market." Woods said a close below $350 would likely send the chipmaker toward $320 to $325.
Inflation data and earnings ahead
Investors face a busy week of catalysts. The August producer price index arrives Thursday and the August consumer price index Friday, with a hot core inflation reading seen as a risk that could send stocks lower.
Adobe reports earnings Thursday after a 33% rally from its late June lows, though the stock remains down more than 25% in 2026; Woods is watching whether it can hold $250. Oracle also reports Thursday, and investors will focus on its debt issuance — if the company eases those concerns, Woods said the stock could climb above its 200-day moving average of $168.
Source: US Top News and Analysis
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