The SPX opening lower and hitting a bottom of 2855.84 (-122.92) was a shock, and people started to make analogies to 1931 and the Great Depression. After the first 30 minutes, the market started to bounce in a spastic manner with 5 steps forward and 3 steps backward.
Sixty (60) minutes later (10pm central), the SPX shot up 90 SPX points very quickly in a 30-minute period. Immediately, all the analysts started to proclaim that we might have seen the bottom of selling, and perhaps a “V-bottom” was taking place. The SPX had bounced from 2855.85 to 2959.75, setting the highs for the day. This bounce was the result of rumors that the Fed was going to come out soon and cut interest rates, and a prediction by Goldman Sachs that the Fed was going to make three cuts in a row soon.
Once the euphoria wore off and lack of evidence of a rate materializing, the SPX retreated -60 points to hug the SPX 2900 line for safety. This 2900 was in the middle of the lows and highs for the day, and seemed like a safe spot to park until we learned more about a potneial rate cut.
The market bounced around between 2880 and 2940 until near the end of the day with three different news events inserted designed to help the markets.
FIRST – The Fed made an announcement that the eonomy was strong and the Fed was prepared to do whatever it takes to stabilze the markets. This failed to produce a move higher as one would expect and the Fed was trying to create.
SECOND – President Trump spoke momentarily about his desire to have a second tax cut. Again, this had the same effect as the Fed's speech – nothing. The market acted as if the President did not talk that day.
THIRD - In the last 15 minutes of trade, some came in trying to spike the market higher by putting in BIDS for LARGE quantities of the Minis. I was told by a friend that he saw a bid for 25,000 Minis in the last minutes. This DID work. In the last 15 minutes, the SPX shot from 2880 to 2954.22 before settling at the top of the hour. After the close of the SPX cash, the S&P 500 futures kept climbing, getting close to 3000 before settling on $31 high on the day.
AAPL – This last minute run higher managed to get AAPL to close down only -0.16 at 273.36. This was a phenomenal move considering the stock was as low as 256.37 (net -17.15) earlier in the day.
VIX – the Volatility Index saw panic for the first time all week. The index hit a high of 49.48, but the run higher had the VIX close at 40.11 (+0.95).
TSLA – What had been over $980 the previous week, the stock hit a low of 611.52. Think about that swing.