Leaders Index 12-14-21

The market sold off today after an inflation report came out at very high levels and above expectations. The major averages opened lower and sold off for much of the day. Late buying came in and the major averages finished off their lows. The Nasd averages closed in the upper half of their intraday trading ranges while the New York averages closed in about the middle of their trading ranges. The COMPQ and the NDX declined 1.14% and 1.04% respectively. The SPX declined .75%. Volume was mixed. It rose 5.33% on the Nasd and declined 4.04% on the New York. Leading stocks were hit pretty hard with the leaders index falling 2.07% on the day. The index closed low in its trading range and took out its recent low of last week. Volume was higher and well above average. About all you can say good about today’s action is that the market closed off its lows. The PPI numbers seem to have spooked the market and caused a sell off. The major averages sold off hard but some late buying cut the losses. Even so the action was negative. Leading growth stocks are getting hit hard. The leaders index made a new low today for the move on very heavy volume. The relative strength line of the index also made a new low. Stocks that have held up well and been leaders are also starting to weaken. The rally attempt isn’t officially dead yet, but it is looking pretty sickly. Even a follow through at this point should be treated with some caution. The Fed will make its announcement tomorrow and that will be the news of the day. It should effect trading before and after the announcement. Right now the market is looking pretty weak. Jerry