First the good news. Despite the wild volatility, today’s decline of 23.75 handles puts the loss for the week at 8 handles. Also, the index did not make a new low for the week, as it found buyers at 4062 as opposed to Monday’s low of 4056.
Now the bad news, the longer the index hovers over support, the greater the chances of it being breached. While many technicians target 4000 as the next major support level, it seems more like 3500 based on my analysis.
Buoyed by higher Crude Oil prices, Exxon Mobil (NYSE: XOM) was the biggest gainer of the components of the index. For the session, the issue gained $1.38 or 1.5 percent to close at $91.69, just missing its highest close in over five years by a penny.
That was over 2 percent better than the cash index’s decline of 0.57 percent.
Meta Platforms Inc. (NASDAQ: FB) was the biggest loser of the top components. For the session, the issue declined by $4.51 or 2.2 percent to close at $203.77. That makes for a two-day decline of $19.64 or 8.8 percent.
Kentucky Derby Preview
The 2022 Kentucky Derby will be the 148th running of the Kentucky Derby. It will take place on May 7, 2022, with a post time of 6:57 PM EST. It has a maximum field of 20 horses and will emphasize the need for a clean start out of the gait to be in contention in the stretch.