- US stock markets have opened slightly higher this afternoon
- 3 major indices all remain close to record highs
- SNAP shares continue decline as lockup period ends
With last week seeing several major stock European stock markets fall back to trade at levels not seen since before the 1st round of the French election, there is little by the way of caution seen amongst US investors. The tech focused US100 came within a whisker of taking out the 6000 handle last Thursday before there was some strong selling which saw the market end lower for the week. This is the the third occasion in the past three months that a long run of steady daily gains has ended abruptly with a market sell-off in a single day.
The US100 has seen another long run of steady gains come to a screeching halt with a notable decline last Thursday. Will this mark a significant high just shy of 6000?
Elsewhere, the US30 has continued its ascent and the market has made another record peak this morning at 21844. There has been another attempt in the past hour to take out this high but for now a double top has formed.
The US30 made a record high of 21844 this morning but there is a short term double top possibly forming?
With the US500 including all the firms on the US30 and US100 (as well as another 370 stocks) it is not surprising that it is somewhere in between the two in terms of price action. The market remains below its record peak seen last Thursday at 2479 but not far from this level. A daily close below 2467 would potentially usher in some weakness for this market but in the absence of that then further gains may lie ahead.
The US500 remains well supported and close to all time highs of 2479. The market remains around 5% higher since the 1st round of the French election.
As far as individual shares are concerned Snap (a component of the US100 and US500) is in the news today after a 3% decline following the ending of a share lockup period. The trading name of Snapchat has gained a lot of attention in recent months with the IPO in March seeing a sharp rally in price shortly afterwards. Today marks the first date that early investors, employees and other insiders will be able to sell shares since the third-largest IPO for a US tech company. The latest price marks a decline of around 20% on the $17 IPO price.
Snapchat shares have hit their lowest ever level today as the first lockup period since the IPO expires. The market has opened 3% lower.