After Monday’s steep decline, the premarket rally, as well any intraday pops, were welcomed with palms out (trading pit term for selling).
On the surface, the damage was not all that severe. However, the S&P 500 index failed to hold most of the gains, and sinking into the red in after-hours trading is not a good omen moving forward.
In one of the choppiest sessions in months, the increase in volatility is another factor that indicates the low for this move may not be in. Of course, Pumping Powell can soften his tone for raising rates when the Fed decision is announced on Wednesday, but that may not alleviate the dominance of sellers on rips, compared to the lack of aggressive buyers on dips.
Similar to Friday’s price action, the sellers were extremely aggressive on the close and into the after-hours trading. Investors that took home the index, either long or short, will be marked by the close (4344.25), which was a meager gain 1.25 handle gain. However, longs may be facing an uphill battle as the index swooned, 15 handles in the after-hours, and is only creeping back of that print. As of 5:00 PM EST, the index was trading 8 handles off the close at 4336.
The good news is that not all of the top compliments of the index were in the red. In fact, of the top ten, six were in the green and four in the red. Leading the way on the upside was Tesla Inc. (NASDAQ: TSLA), which added $9.21 or 1.3% to close at $739.38. That was much higher than the fractional gain in the index.
Berkshire Hathaway “B” (NYSE: BRK.B) was the biggest loser. Although the issue appeared to make a turn-off Monday’s low and exceeded Monday’s high by over $1 but faltered to end the session in red by $1.02 or $0.37 to close at $273.18.
PreMarket Prep Stock Of The Day: Lennar Corp “A” (NYSE: LEN)
New low for the recent move and a bounce after a mixed Q3 report. Will the rebound continue?