Jerry Samet
10-15-2022, 09:55 AM
The market did a mirror image of Thursday’s action. The major averages opened higher in what looked like a continuation of Thursday’s strength, but it didn’t last. Selling came in and the major averages worked their way lower the rest of the session. All the major averages finished near their intraday trading lows. The COMPQ and the NDX fell 3.08% and 3.10% respectively. The SPX declined 2.37%. Volume was lower across the board. It fell 19.06% on the Nasd and 17.13% on the New York. Leading stocks were hit as well with the leaders index falling 3.24% on the day. The index closed low in its trading range on lower and below average volume. The market reversed Thursday’s gains and lost most of the previous rally. The major averages made new closing lows for the bear market, although didn’t undercut the early lows of Thursday. This is negative action as it looks like the market can’t put together more than a one day move. It looked like there could be a short term rally after Thursday’s reversal, but those hopes look dimmer now. Early earnings from several financial institutions looked pretty good and the stocks held some of their early gains. Earnings season now gets into full gear and that will produce some volatility. There could be short up moves on good numbers coming out, but the overall trend is still down. The bottom of this bear market is not in yet. Jerry