When the sixteenth largest bank in the country, SVB Financial Group (NASDAQ: SIVB), goes belly up, it is almost a foregone conclusion that the markets are going to tank. The S&P 500 index mounted a rally following the release of the February jobs data, revealing a slight uptick in the unemployment rate to 3.6%, but succumbed to relentless selling pressure.
The implosion in the regional banks sector coupled with weakness across the board resulted in a daily loss of 58.75 handles at the closing price of 3897.50. That brings the loss for the week to 189.25 handles or 4.6%. That marks the lowest close for the index since January 5, when it ended the session at 3862.50.
The good news is that there will be an Emergency Federal Reserve Bank meeting on Monday. That boosted the index in the after hours session, adding 16 handles at the last after hours print of 3913.50.
Heading in the quarterly quadruple witch expiration, which can bring on added volatility, the bulls will be fighting an uphill battle besides the macroeconomic headwinds. Tuesday’s reading of the February Consumer Price Index will certainly take a back seat by the Federal Reserve Banks actions on Monday.
The task for the bulls is twofold. First of all, Friday’s low (3881) must be defended or a test of the yearly low is on deck (3853.50). On the upside, in order to lessen the grip the bears have on the index, it will have to rally and hold the weekly swing level of 3966. Adding further importance to that area is that Friday’s high was 3978.25, establishing a formidable wall of resistance.
JP Morgan Chase & Co (NYSE: JPM) was the biggest winner of the top components. The issue rebounded from one of its worst days in years on Thursday by gaining $3.31 or 2.5% at a closing price of $133.65.
That was nearly four percent better than the cash index’s decline of 1.48%.
Nvidia Corp (NASDAQ: NVDA), which has been holding up very well during the recent onslaught, was the biggest loser of the top components. For the session, the issue declined by $4.71 or 2%.