Jerry Samet
04-11-2022, 06:32 PM
The market took a hit today. The major averages opened lower and sold off most of the day. All the major averages finished near the bottom of their intraday trading ranges. The Nasd averages were the hardest hit with the COMPQ and the NDX falling 2.18% and 2.35% respectively. The SPX lost 1.69%. Volume was higher across the board. It gained 7.91% on the Nasd and 4.89% on the New York. Leading stocks were lower as well with the leaders index falling 1.03% and closed in the lower half of its trading range. Volume was about flat. The market fell hard today. There were large price declines on higher volume. This produced a new distribution day on all the major averages and showed that large institutional players were selling stocks today. The total distribution count is now getting up there. The charts of the major averages are looking pretty ugly. The rally made it to the 200dma’s of the major averages and failed there. This is negative as it shows that the follow through of 3/16 has pretty much failed. The next line in the sand is the recent lows on the major averages. We could be seeing the beginning of the second down leg of the bear market, Taking out the recent lows would confirm that. The CPI report comes out before the open tomorrow and that will likely set the tone for trading early on. Earnings season starts latter this week as financial stocks begin to report. The picture looks pretty bleak right now and we should see lower prices ahead. Jerry