The Federal Reserve Bank did what investors expected and raised interest rates by a quarter point. Also, investors expected the rate hike would be accompanied by a more “dovish” tone from Jerome Powell during his testimony and that did not happen.
As a result, in an extremely volatile session, the index turned a nearly 40-handle gain heading in the final hour into a 65.25 handle loss at a closing price of 3970.50.
Following such gyrating price action, potential support and resistance is more difficult to identify. On the upside, the psychological 4000-level now becomes a formidable resistance area in the overnight session.
On the downside, if the bulls cannot defend today’s low (3966.25), there is only minor support at Monday’s intraday low (3946.75), which coincides with Friday’s close.
The only issue in the green of the top components was Nvidia Corp (NASDAQ: NVDA). For the session, the issue added $2.69 or 1% at the closing price of $264.68. That was well off its intraday high of $275.89.
That was over 2% better than the cash index’s decline of 1.62%.
Tesla Inc. (NASDAQ: TSLA) was the biggest loser of the top components of the index. For the session, the issue declined by $6.43 or 3.6% at a closing price of $191.16.