Stocks had a strange session trading in a wide range, dropping sharply at the start, rising mid-day, and then dropping into the close.
The S&P 500 finished down 63 bps for the day and up 0.01% for the month. The index struggled all day, stuck between 4,100 and 4,160.
The index tested that 4,160 level 4 times on Tuesday, and by the end of the day, the sellers took over. Even a nearly $5 billion market on close buy imbalance couldn’t help to lift the index.
I still think we will see lower prices, and those gaps down to 3,980 will get filled. It is just taking longer than I would like.
TIP ETF
It was a day that saw nominal yields, real yields, and the dollar index climb. That weighed on the iShares TIPS Bond ETF (NYSE:TIP), which fell by nearly 70 bps.
It took the ETF to the lower end of its recent trading channel. It could be the start of another leg lower for the TIP, which makes this next move in the ETF very critical.
But for that to happen, it first needs to break the lower bound of its current trading channel.
Amazon
Amazon.com (NASDAQ:AMZN) was one of the biggest reasons why the S&P 500 held up as well as it did. The stock was up more than 4%.
The shares climbed back to the trend line it gapped under, following its horrid first-quarter results. That is pretty much where the stock stopped rising.
At this point, I think this is very much a bounce back from oversold conditions.
Salesforce
Salesforce.com (NYSE:CRM) was rising by more than 7% after-hours; the earnings were ok, but they didn’t look fantastic.
I guess all I can say is better than feared. I need to look at them more closely. Salesforce was a stock that was down almost 50% from its peak and trading at levels it last saw in October 2019. That could have a lot to do with the bounce as well.
