Jerry Samet
12-05-2022, 06:31 PM
The market took a hit today, giving back a lot of last weeks gains. The major averages opened lower and pretty much sold of the rest of the session. Some stronger than expected economic reports seem to have cause the decline. All the major averages finished near their intraday trading lows. The COMPQ and the NDX fell 1.90% and 1.73% respectively. The SPX declined 1.79%. Volume was mixed. It rose 12.15% on the New York and fell 1.00% on the Nasd. This produced distribution on the New York averages. Leading stocks were lower as well with the leaders index losing 2.61% on the day. The index closed low in its trading range on higher but still below average volume. The market sold off from the open on stronger than expected economic news. This reversed some of the optimism from last weeks Fed announcement. The SPX fell back below its important 50dma and back below the 4000 level. This rally has been difficult as it has been weak overall and produced few real sizable winners. There are still some items pointing to strength, like the signal in the weekly Coppock, but the market is still having trouble making real gains. It’s a difficult time to try and make progress in the market and a good deal of caution is still warranted. Jerry