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View Full Version : Leaders Index 8-29-22



Jerry Samet
08-29-2022, 06:33 PM
Powell gave a hawkish speech on Friday and the market sold off hard on higher volume, producing distribution days on all the major averages. Today there was no hint of a bounce. The major averages opened lower and after a rally attempt during the day failed they all closed low in their intraday trading ranges. The Nasd average were the weakest with the COMPQ and the NDX losing 1.02% and .96% respectively. The SPX declined .67%. Volume was lower across the board. It fell 5.36% on the Nasd and 12.07% on the New York. Leading stocks were moderately lower as well with the leaders index losing .74% of the day. The index closed in about the middle of its trading range on higher but below average volume. The market got hit hard on Friday as Powell took the steam out of arguments that the Fed would ease up on interest rate increases or even lower rates early next year. He made it plain that fighting inflation is job one even if it causes problems for the economy. The rally was mostly based on the hope of the Fed easing would begin early next year. That seems out the window now. The COMPQ and the SPX tagged their 50dma support levels today but closed above them. The NDX traded below this important support and closed right on it. This moving average is the major support now, if it is broken the lows of mid-June are the likely target. I don’t think the 50 day moving averages of the major averages will hold. Jerry