For those in the quadruple witch expiration blow-off top camp, Tuesday’s price action is encouraging. The weakness in the extended premarket session spilled over into the regular session as investors are taking profits after the index’s major rally in June.
The swift decline in the early part of the session found support as the index was approaching 4400, with buyers stepping in at 4410.50. The index was able to recover and make a new intraday high, but faded into the close.
For the session, the index declined by 19 handles at the closing price of 4434.75. The bears were attempting to extend those losses in the after-hours following a FedEx Corp (NYSE: FDX) Q4 beat that was accompanied by tepid FY 2024 guidance.
For the second day in a row, Tesla Inc. (NASDAQ: TSLA) was the biggest winner of the top components. After announcing an alliance for charging stations with Rivian Automotive Inc. (NASDAQ: RIVN), the issue surged $13.91 or 5.3% at the closing price of $274.45.
That was nearly five percent better than the cash index’s decline of 0.43%.
Exxon Mobil (NYSE: XOM) was the biggest loser of the top components of the index. The issue was under selling pressure from the opening bell and declined $2.37 or 2.3% at the closing price of $102.76.