When the S&P 500 index closes near the lows of the session one of two things can happen. Either the “buy the dip” crowd defends the close/low and instigates an overnight rally or the bears press the index lower and lower.
As we have witnessed over the past 18 months, the “buy the dip” crowd works their magic and the index recovers. Tuesday’s premarket session was more of the same. The low from the open of the premarket session was a few points above the close and the follow-through rally recouped some of Tuesday’s losses. However, the rally came up well shy of the intraday high from Tuesday (4406.25), only reaching 4378.75.
In a super choppy season, the index zig-zagged through the 4350 and 4360 handles. Bears were able to nudge the index into a new low, which was only a few ticks from the close (4343.50), reaching 4344.25. However, the bulls made several attempts to improve on the premarket high, but came up a few points shy, only reaching 4376.50.
The last attempt to make a new high heading into the final hour ended badly. The retreat in the final hour came close to making a new for the session. A late flurry of buyers in the final few minutes saved the index from making a new low. However, the late selling pressure sets the stage for what could be a volatile ending to up and down Q3.
By the close, the index was able to put some distance between the daily low and the close, with the index gaining 6.25 handles to close at 4349.75.
Johnson & Johnson (NYSE: JNJ), which held up well in Tuesday’s session, was the biggest gainer of the top components. For the session, the issue gained $1.21 or .74% to close at $164.02. That far exceeded the cash index’s gain of .16%.
Alphabet Inc. (NASDAQ: GOOG) was the biggest loser of the top components. The issue had its first three-day losing streak since late May, declining $33.26 or 1.22% to end the session at $2690.42.
It should be noted that aggressive after-hours buyers lifted the index 6 handles to end after-hours trading at 4356.
PreMarket Prep Stock Of The Day: Editas Medicine Inc. (NASDAQ: EDIT)
While the S&P 500 index is only a few percentage points from it’s all-time high, many issues are quite some distance from their respective highs and going lower. Read more about EDIT here.