Although these last two weeks have been painful for investors, as the S&P 500 pulled back by ~7% in a rather short time, it is likely setting up what could be a powerful end of year rally. Additionally, if you take a look at a technical chart of the Nasdaq 100 index, we can see that on Wednesday, the market made a big reversal right at the bottom of the consolidation. This leads me to believe the sell off is at or near an end.
Furthermore, the two strongest stocks in the S&P 500 YTD, Nvidia (NVDA) and Meta Platforms (META), have built out compelling technical chart patterns to trade from. And although both of these stocks have rallied more than 100% this year, they still trade below their historical median valuations, and boast top Zacks Ranks.
If you are a trader or investor looking to add exposure to your portfolio, continue reading and I will show you two high probability setups to consider.
This post originally appeared on 24/7 Wall St.