Jerry Samet
02-16-2023, 06:35 PM
The market finally got hit today after the PPI came in above estimates. The major averages opened lower and after coming back a good amount got hit when a Fed president spoke about interest rates. The major averages sold off into the close and finished at their intraday trading lows. The Nasd averages got hit the hardest with the COMPQ and the NDX losing 1.78% and 1.93% respectively. The SPX declined 1.38%. Volume was higher across the board, producing a distribution day on all the major averages. Leading stocks were lower as well, but held up better than the overall market. The leaders index fell .63% on the day. The index closed low in its trading range on lower and below average volume. The market sold off early on the stronger than expected PPI report and a couple of other economic reports. The major averages made a low soon and started a decent rally and recovered most of the early losses. In the last hour selling came in after a Fed president said interest rates would likely go higher than the market was expecting. This caused the market to decline on higher volume. These days are not fun, but the overall damage looks limited. The charts of the major averages show a consolidation while holding over important support. Leading stocks are holding up well as can be seen in the chart of the leaders index, which is holding above its short term 9dma. The relative strength line of the leaders index also hit a new high today. A few more days like today could change things, but right now the damage isn’t great. There will be no update tomorrow. I hope everyone has a good long Presidents Day holiday. Jerry