On many occasions, trading instruments will reverse course after putting in a double top or bottom. Unfortunately, that is what investors are confronted with respect to the S&P 500 index futures.
The index’s spectacular six-day run, under shaky fundamentals and geopolitical concerns, peaked in Tuesday’s session at 4514.75. During the premarket session, the index peaked at 4514 and began to wilt.
The decline was hardly straight down in nature until late in the session. In fact, the rally off the early morning low (4365.50) nearly took the index to 4500, but came up shy only reaching 4493.75, and began to leak once again.
Heading into the final fifteen minutes, it appeared that it was only going to be a modest down day. However, sellers became more aggressive, perhaps inspired by MOC (market on close imbalance) of $1.3B to the sell-side.
As a result, the index sliced through the pairs of low from Friday (4453.50) and Monday (4452.25) and closed near the low for the day. The end result was a decline of 57.50 handles to 4447.50.
A ringing endorsement from Wedbush Securities Daniel Ives, made Apple Inc. (NASDAQ: AAPL), the biggest winner of the top components of the index. The issue extended its winning streak to seven sessions in a row by adding $1.35 or 0.8% to close at $170.17.
That was much better than the cash index’s decline of 1.28%.
Nivida Corp (NASDAQ: NVDA) was the biggest loser of the top components of the index for the second day in a row. For the session, the issue declined by $8.90 or 3.4% to close $256.34.
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