Jerry Samet
12-22-2022, 06:27 PM
After a big rally yesterday the market sold off today on stronger than expected economic news. The major averages opened lower and sold off a good chunk of the day. Buying came in during the last couple of hours and the major averages finished in the upper half of their intraday trading ranges, but still with significant losses. The COMPQ and the NDX fell 2.18% and 2.49% on the day. The SPX declined 1.45%. Volume was higher across the board. This produced a new distribution day on all the major averages. Leading stocks were lower as well with the leaders index falling 2.27% on the day. The index closed in about the middle if its trading range on lower and below average volume. After a big rally yesterday the market gave back most of the gains today. Stronger than expected economic news caused a sell off, but some late strength mitigated the declines. The market is acting poorly right now and is below most of the important points on the charts. Every time there is a weaker than expected number the market rallies in a hope that the Fed will ease up. That is usually quickly reversed. The next important level is the recent lows of 10/13. Recent action suggests that the lows may not hold and the market will go on to new bear market lows. At this point a year end rally is nowhere in sight. We will see if the last week of trading of the year will bring any positive action. There will be no update tomorrow. I hope everyone has a good Christmas weekend. Jerry