The extremely negative price action of Friday’s quad witch expiration had some dire implications for Monday’s session. With the index making a new high for the week in premarket trading, then proceeding to make a new low for the week and closing just off it, the bears were licking their chops.
The premarket and regular sessions both had a lot of chop. In both sessions, the index appeared to want to break down, as well as showing pockets of strength.
The end result was a small gain of 3.50 handles at the closing price of 4501.50. With the Federal Reserve Bank meeting and interest rate announcements, the index is likely to continue to be choppy and range-bound.
Among the top components, Apple Inc. (NASDAQ: AAPL) was the biggest winner for the first time in a while. Investors took their look from Dan Ives of Wedbush Securities, who reiterated his bullish thesis and $240 price target. For the session, the issue added $2.96 or 1.69% at the closing price of $177.97.
That was much better than the cash index’s marginal gain of 0.07%.
On the downside, it appears that the recent rally in Tesla Inc. (NASDAQ: TSLA) is running out of juice, as it was the biggest loser of the top components. For the session, the issue skidded $9.11 or 3.3% at the closing price of $265.28.