Leaders Index 5-5-22

The market really got pasted today. After yesterday’s Fed induced rally the market completely reversed those gains and then some. The major averages opened lower and it was pretty much all downhill from there. There was a lot of damage all around, but the Nasd averages took the worst of it. The COMPQ and the NDX fell 4.99% and 5.06% respectively. The SPX declined 3.56%. All the major averages finished near their intraday trading lows. Volume was lower across the board. It fell 4.52% on the Nasd and was just lower by .04% on the New York. Leading stocks were hit hard as well with the leaders index falling 4.13% on the day. The index closed low in its trading range and broke back below its 50dma. Volume was lower and below average. The market gave back all of yesterday’s gains and more as very large losses hit the major and secondary averages. Pretty much all the gains of the last few days were lost and the major averages are back to their recent lows. Interest rates spiked and there is already talk of a 75 basis point increase at the next Fed meeting, despite what Powell said yesterday. It looked like there might be a small countertrend rally with the intraday reversal of 5/2, but that looks like it is failing already. The charts of the major averages look terrible. I have always said that you should be in the market when it is easy to make money. It isn’t easy now. One of my favorite sayings regarding the market is that when the going gets tough the tough go to the beach. Its nice at the beach now. Tomorrow the employment report comes out and that could cause more volatility. There will be no update tomorrow. Jerry