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The “buy the dip” crowd was lurking in Monday’s session and waited for their sweet old time to spring into action. Heading into the final hour of the session, the S&P 500 index futures were in the red by over 50 handles at 3 PM EST and finished in the green by 23.50 handles at 4151 at 4 PM EST. 

The only plausible explanation for the explosive rally is one of the two things or a combination of both. From Thursday’s high (4203.50) to Monday’s low (4056), or 147.50 handles, the index was in a heavily oversold condition and due for a bounce. Also, being the start of a new month, fund managers had some new money to put to work and they went bargain hunting with the market making a new low for the year.

With Friday marking the lowest close for the year (4127.50), the onus will be on the bulls to defend that level in the overnight session.

Meta Platforms Inc. (NASDAQ: FB) just edged out Nvidia Corp (NASDAQ: NVDA) to be the biggest gainer of the top components of the index. For the session, the issue added $10.66 or 5.32 percent to close at $211.13.

UnitedHealth Group inc. (NYSE: UNH) was the biggest loser of the top components by a slim margin, as Berkshire Hathaway (NYSE: BRK.B) was under selling pressure in Monday’s session as well. For the session, the issue declined by $7.40 or 1.46 percent to close at $501.15.


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