For the first time since the beginning of the month, the S&P 500 index futures had two green days in a row. Barring a major meltdown on Friday, the index is poised to end its seven-week losing streak (last Friday’s close was 3899.50).
The index indicated that it wanted to move higher during premarket trading when it crossed over into 4000 handle a few hours before the open. It pulled back under that level ahead of the open, but not for long. The index quickly bottomed off the opening bell and began to ramble higher.
Once the index breached the premarket high, the pace of the rally greatly accelerated. With no daily resistance levels between Wednesday’s high and last week’s high at 4095, the bulls stuck it to the bears in a big way. The index did stop shy of that level, only reaching 4073.50 late in the session. On a negative note, the index backed off that high by nearly 20 handles in the final nine minutes of the session to close higher by 79 at 4055.75.
On a more negative note, the rally over the last two days has taken place on a much lower than average daily volume.
Tesla Inc. (NASDAQ: TSLA) was the biggest winner of the top components. For the session, the issue gained $48.93 or 7.4 percent to close at $707.73.
That was nearly four times better than the cash index’s gain of 1.99 percent.
The only and therefore biggest loser of the top components was Johnson & Johnson Inc. (NYSE: JNJ) which declined by $0.16 or 0.9 percent to close at $179.46.
PreMarket Prep Stock Of The Day: Nvidia Corp (NASDAQ: NVDA)
After-hours and premarket provide for entries on the long side, which was never approached in the regular session. Read more on NVDA here.
