Jerry Samet
02-22-2022, 06:31 PM
Th market took another hit today as Russia went into Ukraine over the weekend. The major averages opened lower and mostly sold off. There was a small rally after some sanctions were imposed but it didn’t last. All the major averages finished low in their intraday trading ranges. The COMPQ and the NDX fell 1.23% and .99% respectively. The SPX was lower by 1.01%. Volume was higher across the board. It gained 8.57% on the Nasd and 11.15% on the New York. This was enough to produce a fresh distribution day on all the major averages. Leading stocks were lower as well with the leaders index falling 1.67% on the day. The index closed low in its trading range on higher and just below average volume. This showed distribution in quality growth stocks as well. The market weakness continued today. The major averages were lower the entire session except for a weak rally attempt. The Russian move was expected and the question now is how far they will go. Besides this the market also has other headwinds to deal with. The distribution today was the fifth distribution day in the last eight trading sessions. This constitutes a distribution cluster and is very negative. The NDX came very close today to taking out the lows of the rally day, but it held. All the major averages are close to the lows of the rally day that would officially end the rally. They will likely get there in pretty short order. There could well be a counter trend soon, but it looks like it will not be long before the lows of the rally day are taken out. The fat lady may not have officially sung yet, but she it surly standing in front of the mike, looking out at the crowd wondering what those schmucks are still doing there. Jerry