Jerry Samet
01-27-2022, 06:38 PM
The market put in another disappointing session today. There was a strong open as the major averages all gapped higher and produced solid early gains. It again didn’t last long as the major averages topped out and sold off into the close. All the major averages finished near their intraday trading lows. The Nasd averages were hit the hardest with the COMPQ and the NDX losing 1.40% and 1.20% respectively. The SPX declined .54%. The small and mid cap stocks were hit even harder and the semiconductor stocks were crushed as the SOX fell 4.78%. Volume was mixed. It was slightly higher by 1.69% on the New York and lower by 9.75% on the Nasd. Leading stocks were lower as well with the leaders index falling 2.73% on the day. The index closed near the bottom of its trading range on slightly higher and above average volume. The weak action continued today as we had another strong open and weak close. This is a sign of a market that wants to go lower. The complete inability of the market to rally after a significant decline is a sign of extreme weakness. There will be a countertrend rally at some point, but it is not likely to amount to much. The Nasd averages are on the verge of bear market territory while the small caps are already there. We will likely see continued volatility, but the trend is clearly lower. Jerry