After a four-day losing streak to end last week, that extended to five on Monday, the S&P 500 index futures has put in place a two-day win streak. The rally in the premarket was aided by an inline CPI number, that may assuage rampant inflation fears for now.
Once the index surpassed its four-day high (4715.75), there were no discernible resistance levels in sight. That was the result of the tumble in the index last Wednesday after the release of the minutes from the last Fed meeting. In fact, the next daily high for the S&P 500 index futures above Thursday’s high, was not until 4788.25. Instead, investors were scaling out in size and the rally came up well shy of that level as the high for the session was 4739.50.
A late morning swoon found support just above the premarket low (4695), only reaching 4696.75 and rebounded back into the 4700 handle. The mid-afternoon chop fest (4710-4720) was resolved to the upside in the closing minutes of the session.
The end result was a slight gain of 11.25 handles to close at 4716.25. From Monday’s low (4572.75), that represents a robust 3.3% increase.
Tesla Inc. (NASDAQ: TSLA) was the biggest gainer of the top components of the index. After a four-day losing streak, it is now on a three-day win streak by adding $41.82 or 3.9% to close at $1106.22.
That far exceeded the cash index’s gain of 0.28%.
Johnson & Johnson (NYSE: JNJ) was the biggest loser among the top components of the index. The issue was lower for the third day in a row declining $1.44 or 0.85% to close at $169.79.