In a session influenced by Friday’s quadruple witching and the old adage of “Sell Rosh Hashanah, Buy Yom Kippur,” the S&P 500 index futures endured quite the selloff.
The day started on a somewhat hopeful note in the early premarket session, with the index holding above yesterday’s closing level. However, it didn’t take long for that optimism to fade as a selloff kicked in once that level was broken.
By the time the opening bell rang to signal the start of the regular session, bears had taken control of the market, driving the index lower without much resistance. Bulls tried to mount a defense, initially finding some footing around the 4508 area. They then attempted to hold the line at 4495. Despite their efforts, the index oscillated around the psychological 4500 level for much of the afternoon, but ultimately couldn’t maintain that level into the close.
When the session ended, the S&P 500 futures had dropped 57 handles, closing at 4498. This made for an overall negative week for the index, which saw a decline of 14.75 handles from the previous Friday’s close.
UnitedHealth Group Inc. (NYSE: UNH) stood as the lone bright spot among the top components. The healthcare giant managed to defy the broader market trend, ending the day up by $3.10 or 0.64%, closing at $486.70.
This performance served as a counterbalance to the cash index’s loss of 1.22% for the day.
On the flip side, NVIDIA Corporation (NASDAQ: NVDA) became the biggest casualty among the top components, falling in line with the broader tech selloff. The tech firm saw its shares tumble by $16.81, or 3.69%, to close at $439.00.
‘Sell Rosh Hashanah, Buy Yom Kippur’ Strategy Makes Dramatic Return In 2023
If “Sell Rosh Hashanah, Buy Yom Kippur” continues, bullish traders and investors at least have Yom Kippur to look forward to heading into next weekend. Read more on the strategy here.