Leaders Index 4-22-22

[Jerry Samet]

The market suffered an ugly reversal today. The major averages opened with solid gains in what looked like a continuation of yesterday’s strength. It didn’t last long as selling came in and the major averages reversed lower. The selling accelerated when Powell pretty much confirmed a 50 basis point increase at the next meeting. All the major averages finished near the bottom of their intraday trading ranges as selling continued into the close. The COMPQ and the NDX fell 2.07% and 1.99% respectively. The SPS lost 1.48%. There was weakness in the small and mid-cap averages as well. Volume was higher across the board. It gained 13% on the Nasd and 7.78% on the New York. This produced a new distribution day on all the major averages. Leading stocks were hit hard as well with the leaders index falling 4.15% and closing near the bottom of its trading range. Volume was higher and about average. This showed distribution in quality growth stocks. The action today was very negative. The major averages sold off hard on higher volume. This showed that large institutional players were selling stocks today. The New York averages lost important moving averages and the Nasd averages too out the lows of the last week or so. Leading stocks were showing some strength as the leaders index had six up days in a row and made a new high. Much of that was lost today. It looks like the market will go back and test the recent lows of early to mid March. If they are taken out it will likely confirm the next down leg of the bear market. Next week earnings season kicks into high gear as several important companies report. There will be no update tomorrow. Jerry