Investors breathed a sigh of relief today when the February Consumer Price Index came in line with expectations.
The rally was not a straight up affair. It was interrupted midday by a confrontation between Russia and the US, resulting in the downing of its own drone after it was damaged by a Russian aircraft.
Perhaps instigated by a large buy imbalance for the close, the index tacked on over 40 handles in the final thirty minutes of the session. The end result was a gain of 65.50 handles at a closing price of 3954.25.
While it is difficult to identify major support, it is not hard to identify major resistance. Over the last three sessions, the index has peaked in a narrow range between 3971.50 and 3978.50. The onus is now on the bulls to clear that level and hold it on a closing basis.
The biggest winner of the top components of the index was Tesla Inc. (NASDAQ: TSLA). Following a five-day losing streak, the issue is now on a two-day winning streak. For the session, the issue added $8.78 or 5% to close at $183.26.
That was over 3% better than the cash index’s advance of 1.68%.
The biggest loser was the smallest gainer, which was Johnson & Johnson (NYSE: JNJ). For the session, the issue advanced by $0.86 or 0.56% with a closing price of $153.92.
