After big moves in the markets, like the recent rally, there are periods of consolidation. Those periods help determine whether the move will continue in its current direction or reverse course.
On the downside, the bulls are making their stand at the 3960 area. This is evidenced by three consecutive lows from 3960-3964. The upside is not as well defined by such a relatable pattern, but the upside level to clear is obviously 4000. Furthermore, a vast majority of the trading action over the last three days has in fact been between the two aforementioned levels.
The end result of Wednesday’s session is a palpable decline of 31 handles with a close of 3968.50. It should be noted that the last after-hours print of 3980 was over 10 handles above the close, perhaps indicating yet another test of 4000.
UnitedHealth Group Inc. (NYSE: UNH) recovered some of its shellacking over the last five sessions and was the biggest winner of the top components. For the session, the issue gained $8.51 or 1.69% to close at $511.52.
That was over 2% better than the cash index’s decline of 0.83%.
Profit-taking ahead of its Q3 report made Nvidia Corp (NASDAQ: NVDA) the biggest loser of the top components. For the session, the issue declined by $7.56 or 4.5%.
PreMarket Prep Stock Of The Day: Target Corp (NYSE: TGT)
Q3 earnings come in, way under the “high bar” set by Walmart Inc. (NYSE: WMT) on Tuesday. Read more on TGT here.
