Bulls Maintain Upside Pressure
As the opening bell rang, both the S&P 500 futures and the Nasdaq were trading lower than the close on Friday. Yet, there was early strength in the Nasdaq that was strong enough to help carry the market back to previous highs. Around this level is where the first sign of bears was seen for the day.
Once the sellers in the Nasdaq took over this created the first down trend in the morning session. Meanwhile the rest of the market caught up to the Nasdaq, creating a solidation period. This consolidation is where the bulls and bears met before the bulls eventually won, again.
Bulls beating the bears has been the theme recently.
As the bulls started to show their strength, the overall market started to move in tandem. This created a strong push through the previous high on the day with plenty of momentum. That momentum carried into the rest of the day.
As the day progressed, some buying pressure did slow down, but never stopped. Eventually the momentum that was built in the early morning carried the S&P 500 futures to a psychological level that some of our traders were watching at 4300.
Once the S&P 500 futures hit 4300, that was the first lack of strength seen by the buyers since the opening hour of the market. This is not to be confused with a selling pressure that was overpowering the market.
The last hour of the cash session is often referred to as “power hour” and this one provided anything but power. Both the Nasdaq and the S&P 500 settled around the session high and stayed there for the majority of the closing hour.
At the close both the Nasdaq and the S&P 500 futures closed positive on the session. The S&P 500 futures closed up .40%, gaining 17 points, while the Nasdaq futures closed up .78%, adding 106 points.