The bears remain in firm control of the S&P 500 index as it made a new low for the move by a wide margin. To make matters worse, the index erased a gain of 40 plus handles to a loss of 43.75 handles with a close at 3987.50.
That marks the first close under 4000 since July 26, when it ended the session some 60 handles lower at 3923.25.
The only positive that can be taken from Tuesday’s steep decline is that it has now taken back half of the gains from the summer rally (3639-4327.50) which is at 3983.25 and closed above it. The question remains whether or not the index can stabilize here and build a base to move higher.
The biggest gainer of the top components of the index was the smallest loser, Johnson & Johnson. For the session, the issue declined by $0.57 or 0.35% to close at $162.70.
That was much better than the cash index’s decline of 1.1%.
Exxon Mobil flipped its role from the biggest gainer of the top components to the biggest loser. The culprit is a reversal in the rally in Crude Oil futures. For the session, the issue skidded by $3.81 or 3.81 % to close at $96.31.
PreMarket Prep Talks With Jay Woods
Chief Market Strategist at DriveWealth as well as an NYSE Executive Floor Governor. Here is a breakdown of the topics discussed.