On some occasions, the overall premarket action can be a good indication of the price action for the upcoming session. However, for Monday, it was the “late money” leading right up until the open that was the tell.
Discounting the premarket action, the S&P 500 index futures told you one thing early on, it was not going green. While Friday’s all-time closing high price for the index from Friday (4703.50) was near, the high print off the opening bell was 4701.50 and was not revisited.
Heading into the final fifteen minutes of the session, it appeared that the index was going to trim the losses for the session as it rallied back to 4680. However, the double whammy of some negative Apple Inc. (NASDAQ: AAPL) news and a small buy imbalance that flipped to a large sell imbalance brought the bears to life.
As a result, the index crumbled and matched Friday’s low (4655.25), finding buyers at 4655.50 and limped into the close. For the session, the index declined by 44 handles to close at 4659.50.
Value stocks were in favor of the top components of the index as the biggest gainer was Johnson & Johnson (NYSE: JNJ). which has been higher in six of the last seven sessions added $2.96 or 1.78% to close at $168.45.
That was a solid gain versus the cash index’s decline of 0.91%.
Nvidia Corp (NASDAQ: NVDA) led the tech wreck and was the biggest loser of the top components. It was lower for the fourth day in a row, declining $20.37 or 6.7% to end the day at $281.61.
Monday’s PreMarket Prep Plus Segment: “Briefing With Brent”
Brent Slava, the head of the Benzinga Pro Newsdesk joined to show investors how to better interpret the actions and intentions of the Federal Reserve Bank. Read more about the briefing here.