The recent theme of buying the dip has now turned into buying the rip for the S&P 500 index futures.
After the bulls firmly held support at Tuesday’s close in the overnight and premarket hours, they were finally able to breach the double-top in the 5313 area in early morning trading and began the march to new highs for the week. Off the regular session open, however, the bears swiftly took the index futures back down to test the bulls’ resolve at Tuesday’s close once again.
Soon enough, it was evident that support would hold even though sellers tried to take the reins when May’s ISM services came in above expectations (53.8% vs. 50.7% exp.) at 10:00am EDT. More buyers stepped right in to buy the dip and before the morning was out, the premarket high was breached. The rally continued fairly steadily throughout the rest of the day, pausing at last week’s high, as well as the previous all-time closing high.
Nearing the close of the regular session, profit-takers and bears tried to take the index futures away from it’s all-time high during the penultimate 10 minutes, but buyers stepped in during the final 10 minutes, pushing to a new all-time closing high of 5366. For the day, the index futures gained a healthy 62 handles. In after-hours trading, the rally continued slightly higher to match the previous all-time high of 5368.25.
Among top components of the index, tech components ruled the day, especially those involved in AI. Broadcom Inc (NASDAQ: AVGO) emerged as the biggest gainer, advancing by $82.27 or 6.18% to close at $1413.09 for the day.
That performance beat the cash index’s advance of 1.19% over fivefold.
The biggest loser extended its losing streak to three days, that being JPMorgan Chase & Co (NYSE: JPM). For the day, the banking behemoth continued to distance itself from all-time highs, declining by $1.81 or 0.91% to close at $197.26.
