Jerry Samet
02-23-2022, 06:35 PM
The market got pasted again today. After opening with solid gains it looked like the market would put in a bounce today. It didn’t last long as the major averages put in their highs of the day in the first ten minutes and it was all downhill from there. All the major averages finished at or very near their intraday trading lows as selling continued into the close, not a good sign. The Nasd averages again took the worst of it with the COMPQ and the NDX falling 2.57% and 2.60% on the day. The SPX lost 1.84%. Volume was lower across the board. It fell 4.82% on the Nasd and 5.43% on the New York. Leading stocks got hit as well with the leaders index falling 2.23% on the session. The index closed near the bottom of its trading range on lower and below average volume. The market tried to rally early today after the recent selloff. The fact that it can’t rally is a very negative sign. The Nasd averages are just a hair shy of down 20%, the level that is considered a bear market. All the major averages took out the lows of the rally day today, officially ending the rally attempt that began with the most recent follow through. The fact that this would be a failed follow through showed pretty clearly at the time as none of the three confirming indicators confirmed the follow through. The vast majority of follow throughs in bear markets fail, especially when they are not confirmed by the weekly Coppock. We have not seen the bottom of this bear and lower prices are ahead. Jerry