It was a jittery market on Tuesday, as investors showed caution ahead of Nancy Pelosi’s visit to Taiwan. Following a weak premarket session, the bears took control of the index off the open of the regular session with the index already breaching Monday’s low.
Their goal, as Pelosi’s plane was landing in Taiwan, was to breach Friday’s low (4081) and nudge the index into an area with limited daily support. Based on the daily charts, the next daily low was from last Thursday at 3994.50. However, the index went only two ticks lower and bottomed at 4080.50, and began to rebound.
The ensuing rally took the index beyond the premarket high and flirted with the pair of highs from Friday (4144) and Monday (4147.75) but came up shy, stalling at 4143. Now the index has a triple top in place at the 4145 area and a quadruple top if the June 9 high (4145.75) is factored in.
The bears reasserted control in the final ten minutes of the session, turning a minor loss into a more substantial one. For the session, the index declined by 26.75 handles to 4093.75.
Tesla Inc. (NASDAQ: TSLA) was the biggest winner of the top components of the index. The issue is now on a five-day winning streak as it advanced $9.93 or 1.1%.
That was much better than the cash index’s decline of 0.67%.
Microsoft Corp (NASDAQ: MSFT) was the biggest loser of the top components. The issue is now on a two-day losing streak following a four-day win streak following its Q2 beat. For the session, the issue declined by $3.19 or 1.1% to close at $274.82.
PreMarket Prep Stock Of The Day: Pinterest Inc. (NYSE: PINS)
Activist Elliot Management saves the day as the firm announces it has the largest stake following the company’s Q2 miss and lower daily MAU’s. Read more on PINS here.
