Closing in the red by 55.75 handles at 4201.50 makes it a bad day. What makes it a really bad day is that at one point in premarket trading, the index was higher by 77 handles. What is behind the stunning reversal is certainly not a surprise and emphasizes how headline-driven this market is and will continue to be for the foreseeable future.
To put things in the proper perspective, it was the fourth time in the last five weeks of declines, with the cash index shedding 124.56 or 2.9%. Unfortunately, that is by far the biggest weekly decline of the four.
On a positive note, the index closed well above the low for the (4138.75) and even farther away from the low of the move (4101.75). When or if that low is breached, will certainly dictate the next major move in the index.
The biggest winner of the top components also made a new all-time high. That being Berkshire Hathaway ‘B’ (NYSE: BRK.B) that advanced $1.30 or 0.4% to close at $326.60.
That was almost 2% better than the cash index’s decline of 1.3%.
With the “risk-off” trading being on, Tesla Inc. (NASDAQ: TSLA) was the biggest loser of the top components. For the season, the issue declined $42.95 or 5.1%.
PreMarket Prep Stock Of The Day: Rivian Automotive Inc. (NASDAQ: RIVN)
Sean Udall, CIO of Quantum Trading Strategies and publisher of the Udall Report, discussed beaten down automobile make from a long and short-term perspective. Read more on RIVN here.