Selling led in index futures after the close, while long positioning while waiting for a pullback prompted short covering. Investors are waiting for a pullback while seeking to avoid risk during declines.
Selling led trading in index futures after the close, although some participants were also waiting for a pullback. In the short term, there were indications that selling momentum was leading.
As dip-buying emerged, long positioning strengthened, creating a setup in which selling pressure was dispersed and short covering was pursued. Market participants have maintained their stance of waiting for a pullback while remaining mindful of downside risk.