The S&P 500 index futures showed promise at the opening of the regular session to extend its all-time closing high streak to nine days. However, sellers congregated at the psychological resistance level of 4700, peaking at 4700.50, and then the sellers on strength turned into sellers on weakness.
The index briefly paused at Monday’s all-time closing high price (4694) and easily cut through the premarket low (4680). Monday’s low 4676.25 found few buyers, but the index did find support just under Friday’s low (4667.25) at 4663.25.
The index was on the rebound heading into the final hour of the session. The rebound off the low was able to distance itself from the low, but could not reach mid-range for the session.
The index had its worst session since October 26 (declined 20.75 handles) falling by 15.75 handles to close at 4678.25.
Out of nowhere, Amazon.com (NASDAQ: AMZN) was the biggest gainer of the top components. For the session, the issue added $87.25 or 2.5% to close at $3576.23.
That was a polar opposite to the cash index’s loss of 0.40%.
One tweet from Michael Burry was all that was needed to make Tesla Inc. (NASDAQ: TSLA), the biggest loser of the top components. For the session, the issue swooned $139.44 or 12% to close at $1023.50.
PreMarket Prep Plus Trading Lesson Of The Day: Cut Your Losers and Move On
Co-host of the PreMarket Prep Show, Dennis Dick, discussed his losing overnight trade in General Electric (NYSE: GE) and how he handled it. Read more on GE here.
