Jerry Samet
08-02-2022, 06:31 PM
The market took a break today after its recent advance. The major averages opened lower but then rallied nicely. Hawkish statements from a couple of Fed governors caused a sell off. All the major averages closed in the lower half of their intraday trading ranges. The New York averages were the weakest with the SPX lower by .67%. The COMPQ and the NDX declined .16% and .30% respectively. Volume was higher across the board. It gained 15.67% on the New York and 8.23% on the Nasd. This produced a distribution day on the SPX. The decline in the COMPQ was to small to qualify. Leading stocks were slightly higher with the leaders index gaining .39% on the day. Volume was lower but above average and the index closed in the lower half of its trading range. The market was down moderately today. The Fed statements caused a decline as hopes that the Fed would moderate rate increases was a big cause of the rally. The higher volume was not encouraging , but the distribution count remains low. The short term trend of the market is still up and this counter trend rally still looks ok. The natural target for the major averages in this rally is their respective 200dma’s. That moving average would provide significant resistance. Jerry