Jerry Samet
11-02-2022, 06:37 PM
It was a wild ride today. The market opened lower and mostly went sideways until the Fed announcement. It rallied until the press conference and then reversed lower and sold off into the close. All the major averages finished near their intraday trading lows . The losses were significant with the COMPQ and the NDX falling 3.36% and 3.39% on the NDX. The SPX lost 2.50%. Volume was higher across the board. It gained 15.24% on the Nasd and 10.08% on the New York. This produced distribution on all the major averages. Leading stocks were hit as well with the leaders index off by 3.88% on the session. The index broke below its short term 9dma and closed low in its trading range. Volume was lower but above average. The market was trading moderately lower until the Fed announcement, which seemed to hint at smaller rate increases in the future. The market rallied to solid gains until the press conference. Powell was very hawkish at the conference and said that even if future rate increases are smaller we are not near the end of the tightening cycle. The market reversed and sold off hard on heavy volume, erasing a lot of its recent gains. The SPX had just regained its 50dma, but came crashing back below it today on heavy volume. The Nasd averages also broke below short term support. The market rallies and declines based on when it thinks the Fed will “pivot” on interest rates. Today’s statements by Powell put sentiment back in the negative camp. It is a tough market to make any progress on either the long or short side, although the short side seems easier right now. The overall picture remains negative, but at least the Fed meeting is behind us. The employment report comes out on Friday. Jerry