On some days, it is easier to make sense out of the price action in the S&P 500 index futures than others. Today was not one of them. Between the premarket and regular session, there must have been 200 handles or more of price action, up and down, up and down.
The bad news is that the index breached last week’s low (4667) by nearly 20 handles when it bottomed at 4649 around 11:15 AM EST. The good news is that the index battled back to end the session way off that low in the green by 8.75 handles to close at 4688.50.
As wild as the intraday swings have been as of late, the closes are finding a familiar area. Over the last eight sessions, while the index has had nearly a 100 point range, all of the closes have between 4678.25 and 4701.50, with four of the eight flanking 4680. What does it possibly mean? Consolidation periods during a strong trend, often favor a continuation of the current trend, which is no doubt higher.
Looming higher interest rates to combat inflation has sparked buying interest in the financials. As a result, JP Morgan Chase & Co. (NYSE: JPM) was the biggest gainer of the top components for the second day in a row. For the session, the issue added $3.93 or 2.39% to close at $168.28. That makes a two gain of $7.36 or 4.5%.
That was much better than the cash index’s small gain of 0.17%.
Tesla Inc. (NASDAQ: TSLA) ended a four-day winning streak and was the biggest loser of the top components. For the session, the issue declined $47.84 or 4.1% to close at $1109.03.
PreMarket Prep Stock Of The Day: Dick’s Sporting Goods (NYSE: DKS)
Bad day to have a great earnings report and raised guidance. Read more about DKS here.
