Back to the headline-driven market, big time. The initial headline around 8:45 AM EST, that the US was talking with Iran about increasing its oil production, catapulted the S&P 500 index futures over the major resistance level (4400), which has been mentioned several times this week.
The robust rally took the index to 4418.75, a level that was not revisited during the regular session. Instead of loving everything that came out of Fed Reserve Chairman, Jerome Powell’s mouth, investors seized on his commentary in a negative fashion. So much so, that the index went from being in the green by 37 handles to in the red by 41 handles.
The rebound off the intraday low took the index in the green but started to unravel around 2:30 PM EST. The index neared the low for the day late in the session, but caught a bid. The end result was a decline of 20 handles to close at 4361.75.
Johnson & Johnson (NYSE: JNJ) was the biggest gainer of the top components of the index. Despite a negative headline on its Covid-19 vaccine, the issue opened higher and was undeterred by the retreat in the index. For the session, the issue added $2.44 or 1.47% to close at $168.48.
That was much better than the cash index’s decline of 0.53%.
Tesla Inc. (NASDAQ: TSLA) failed miserably at Wednesday’s high and was under constant selling pressure. For the session, the issue declined $40.60 or 4.6% to close $839.29.
PreMarket Prep Stock Of The Day: Snowflake Inc. (NYSE: SNOW)
Putting the news and technical analysis together to identify potential trading opportunities. Read more on SNOW here.