Jerry Samet
02-17-2022, 06:43 PM
The market got hit hard today as it looks like a Russian move into Ukraine is close. The major averages opened lower and it is all downhill from there. All the major averages finished near their intraday trading lows as selling continued into the close. The losses were widespread. The COMPQ and the NDX lost 2.88% and 2.96% respectively. The SPX fell 2.12%. Volume was slightly higher across the board. This produced a distribution day on all the major averages. Leading stocks sold off as well with the leaders index falling 2.48% on the day. The index closed near the bottom of its trading range on higher but still below average volume. This showed distribution in leading growth stocks as well. It appears that news of a Russian pullback a few days ago that caused a strong rally was false. It looks increasingly likely that there will be fighting in Europe and this is hurting the market. A lot of damage was done today. The distribution count is getting higher and both the SPX and the COMPQ closed below the low of the follow through day. This usually means the follow through will fail. It is pretty clear that this latest rally attempt has gone nowhere and likely will not. The rally isn’t officially dead until the low of the rally day is taken out, but right now that is almost waiting for the fat lady to finish and not just sing. For all intents and purposes the rally has failed. There will be no update tomorrow. I hope everyone has a good President’s Day weekend. Jerry