When the S&P 500 index futures end the session at one extreme, it provides traders with an enticing set-up. Using Wednesday’s washout close as the example, there was the potential for an overnight bloodbath and a deeper correction. If that low could hold, then a sharp rebound may follow.
However, the setup was not as easy as it appears. After a premarket rally, which had the index higher by over 40 handles at one point, the index came down to test the premarket low. The bears made a valiant attempt to breach that level but were turned only a few ticks away and the rally was on.
Whereas Wednesday’s decline was, for the most part, a straight down event, Thursday’s advance included sharp rallies, followed by a sharp decline only to rebound again. In fact, the whipsaw price action continued into the final eight minutes of the session. After backing off from the high of the day (4593.75) to 4588, the index swooned to 4565.75 and snapped back to close higher by 66.25 handles at 4574.75.
The biggest gainer of the top components was Nvidia Corp (NASDAQ: NVDA). For the session, the chipmaker added $6.91 or 2.2% to close at $321.26.
That was slightly better than the cash index’s gain of 1.42%.
Tesla Inc. (NASDAQ: TSLA) was the biggest loser of the top components. Now on a two-day losing streak of $64, the issue ended the session lower by $10.40 or .91% to close $1084.60.
PreMarket Prep Stock Of The Day: Snowflake Inc. (NYSE: SNOW)
Give me my money back, following a Q3 that we preceded by nearly a $100 drop over the past few weeks. Read more about SNOW here.