joining us is jonathan krinsky why are we only halfway through? >> there's two issues we're looking at short-term we got oversold conditions last week seeing relief this week. when we look at the medium-term picture, some of the momentum gauges that we would classify as medium-term are starting to flip over we are close to that on the s&p. the other issue that not a lot of people are talking about is this volume profile. most people look at volume over a time series, we like to look at it on a price basis if you think of what happened last time nvidia reported earnings in late may, we went straight up from 4200 to 4600 in the s&p. that creates what we call a volume pocket. i think we're halfway through the volume pocket. >> you suggested that some of the -- you know, more recent strength in the nasdaq is more than meets the eye under the surface there are more stocks -- you know, the day the nasdaq this week had the best day since july, you're like wait a minute, more stocks were still down than up on that day, portending underlying weakness >> i

up next, trouble in the technicals btig's jonathan krinsky is back. he's flagging the one sector that could see some serious downside and the one he's betting on instead we are live from the new york stock exchange you're watching "closing bell" on cnbc. the dow up i remember when i first started flying, and we would experience turbulence. i would watch the flight attendants. if they're not nervous, then i'm not going to be nervous. financially, i'm the flight attendant in that situation. the relief that comes over people once they know they've got a guide to help them through, i definitely feel privileged to be in that position. ♪♪ ( ♪♪ ) ( sfx: people cheering ) ( sfx: stock exchange bell ringing ) ( ♪♪ ) ( ♪♪ ) ( sfx: people celebrating ) ( ♪♪ ) ( sfx: people celebrating ) ( sfx: stock exchange bell ringing ) >>> welcome back to "closing bell." the nasdaq 100 rebounding today. our next guest still sees technical trouble ahead and more upside in one of this year's lagging sectors. joining us now is btig's jonathan krinsky jonathan, good to see you.

level this week, that could mean more down side ahead according to our next guest let's bring in jonathan krinski. you see all of these charts, lines and levels take us through why you think there could be -- could be hypothetically danger ahead. >> so, there's -- you guys have been talking about some of the moving averages. for us, moving averages are more a gauge of trend the fact we broke under the 50-day moving average, there could be some issues there that's not the key reason that concerns us. the two key reasons are the volume profile that we talk about. most people look at volume on a time series, how much volume trades any given day we like to look at it on a price basis, how much volume trades at each given price level over the last three years what we've found is around the 369, 370 level, there is a significant amount of trade. the fact we broke over that opens a down side volume pocket. we accelerated so quickly from the upside in late april when the qs were around 320 we rallied 16% from late april to late to mid-june when the qs were around 370. that quick move on the upside can of

. >> which is why jonathan krinsky points out even as the nasdaq has its best day, jason snipe, best day since july 28th. advance/decline line was down, more stocks down than up. it gives you a good read into the fragility of where the nasdaq has been. now if you look back and you say, okay, what are these sort of red flags where maybe there are some signs of excess in frothy environments, an nft goes for $40 million, spacs are all the rage, and you go down the list, nvidia gets a $1,000 price target, the stock is up 1,000%, et cetera, and then gets the $1,000 price target. is that valid? we look back and we say, hello -- >> of course it's not, in my opinion. talking about nvidia, and i know we've already talked about it -- and i think josh makes a great point just in terms of how much the demand has been pulled forward already and how they can kind of grow into what that is, and to his point on the cost of the chips and how they can build them in inventories and all of that, listen, data centers are supposed to be up 80% quarter over quarter, gaming, china in automotive -- >> it tra