On many occasions, a quad witch expiration can mark a major turning point in the market. The index can either continue with the current trend or stage a reversal. Moving forward, the daily high (4493.75), the index’s highest level since March, and the current closing high for the move (4471.25), will be key levels to monitor over the next three months.
If the index can regain its footing and continue to post new highs for the move, there is very little resistance on the upside. However, if the index fails to regain today’s losses, the index may be in store for a much needed correction.
The end result for Friday’s session was a modest decline of 17.50 handles at the closing price of 4453.75. Overall it was a great week for the index as it added 105 handles.
Among top components, Tesla Inc. (NASDAQ: TSLA) was the biggest winner. The issue ended a minor two-day losing streak by gaining $4.64 or 1.8% at the closing price of $260.54. That marks the highest close for the issue since September.
That was well over two percent better than the cash index’s decline of 0.39%.
The biggest loser of the top components was UnitedHealth Group Inc. (NYSE: UNH). The issue came under selling pressure when Humana Inc. (NYSE: HUM) attempted to reaffirm guidance, but did a very poor job of it. For the session, the issue declined by $7.40 or 1.59% at the closing price of $458.49.