Jerry Samet
12-27-2022, 06:46 PM
The market continued the weak action of last week. The major averages opened lower and mostly traded in negative territory all day, except for the INDU. The New York averages were stronger and they finished in about the middle of their intraday trading ranges. Nasd averages closed near the bottom of their trading ranges. The COMPQ and the NDX fell 1.38% and 1.48% respectively. The SPX lost .65%. Volume was higher across the board, producing distribution on all the major averages. Leading stocks were lower as well with the leaders index declining .39% on the day. The index closed high in its trading range on lower and below average volume. The market continued to show weakness today and there is no year end rally in sight. Leading stocks are acting poorly and breakouts are mostly failing. The distribution count has now gotten to pretty high levels and is near the level associated with failed rallies. The next major support is the lows of 10/13, which are the bear market lows. The market is not far from those levels and it is looking increasingly unlikely that those levels will hold. A break below will likely lead the market to sell off further. I suspect that those lows will not hold and we are going to see lower prices ahead. There will be no update tomorrow. Jerry