The bulls made yet another attempt to push the S&P 500 index futures index through 4800 for the first time ever. However, what ended up happening is that a triple top is now in place just under that key psychological resistance level.
Heading into the final hour, the index was poised to take another crack at a breakout, but sellers emerged en masse and distanced the index from the wall of sellers above. Once the index breached the close (4784.50), the pace of decline accelerated.
While the index now has three highs in place within a 3.75 range (4796-4799.75), it also has three lows within a 3.25 range (4767.25-4770.50). However, the index was never able to post a close near the trio of highs, and Thursday’s close is dangerously close to the bottom of the trio of lows.
The range of the final hour of the day, 24 handles (4791.25-4767.25), is the worst hour for the index in the last seven sessions. For the day, the index declined 13.25 handles to close at 4771.25.
The safety trade was intact as Johnson & Johnson (NYSE: JNJ) was the biggest gainer of the top components. For the session, it added $0.76 or 0.44% to close at $172.31.
That was better than the cash index’s decline of 0.30%.
Recall news made Tesla Inc. (NASDAQ: TSLA) the biggest decliner of the top components. For the session, it declined by $15.85 or 1.5% to close at $1070.34.
PreMarket Prep Stock Of The Day: Micron Technologies (NYSE: MU)
Breakout aborted for now. Read more about MU here.
