Trading ranges are made to be broken. After a choppy three-day period, with the S&P 500 futures index wedged into a 4080.50-4147.25 trading range, the bulls reasserted control of the index for most of the session.
After a weak close on Tuesday, the index was in the green for the majority of the premarket session. Although the index meandered in the 4120 area early on, once it caught a sustained bid above the level around 11 AM EST, the relentless march higher was on.
The index did pause momentarily at the top of the recent range, but when it refused to retreat from that area, the index entered an area with very little resistance. This was evidenced by the ease with which it moved through the 4150 and 4160 handles, before stalling at 4170.
There was some profit taking in the last ten minutes of the session. As a result, the index posted a new high for the rebound by gaining 62.50 handles to close at 4156.25.
Amazon.com Inc. (AMZN) resumed its post-earnings rally and was the biggest gainer of the top components of the index. For the session, the issue added $5.36 or 3.98% to close at $139.52.
That was over double the cash index’s gain of 1.53%.
The one and only loser of the top components of the index was Exxon Mobil (NYSE: XOM) which was submarined by a collapse in Crude Oil Futures. For the session, the issue declined by $3.03 or 3.23% to close at $91.04.
PreMarket Prep Stock Of The Day: Airbnb Inc. (NASDAQ: ABNB)
It was a good day to have a mixed earnings report as the investors were in bargain shopping mode. Read more on ABNB here.