Sometimes a move (up or down) in the markets based on news does not take place exactly when the news hits the tape. Tuesday’s price action was a prime example of this taking place.
With the third regional bank failure taking place since early March over the weekend, a Monday rout is what many expected. Instead, the index pushed to a new high for the move, before tapering off into the close.
As reality set in during the premarket session, the index started the day slightly in the red and then collapsed. After opening under Monday’s low, the index went two ticks higher and went into a freefall.
With no solid daily support levels in the index between Monday’s low (4181) and Friday’s low (4131.50), the index found no buyers. It was not until the index far exceeded its nine-day average trading range and approached 4100, did buyers emerge at lunchtime making 4105.50 the low for the session.
The index drifted higher into the close and trimmed the 80+ handle loss to 49 at the closing price of 4136.75.
Amazon.com Inc. (NASDAQ: AMZN), which had a few rough days following its Q1 report, was the biggest winner of the top components of the index. For the session, the issue added $1.58 or 1.5% at the closing price of $103.63.
That was two percent better than the cash index’s decline of 1.17%.
A crater in Crude Oil prices made Exxon Mobil (NYSE: XOM) the biggest loser of the top components of the index. For the session, the issue swooned $4.57 or 3.99% to close at $110.10.
