Leaders Index 1-25-22

The positive reversal of yesterday didn’t last long. The market sold off at the open and after some large declines found some support. There was some positive action, especially in the New York averages, but they all closed with significant losses. The Nasd averages were the weakest with the COMPQ and the NDX fell 2.28% and 2.48% while the SPX declined 1.22%. The Nasd averages finished in the lower half of their intraday trading ranges while the New York averages closed in the upper half of their trading ranges. Volume declined across the board from yesterday’s high levels. It fell 29.93% on the Nasd and 23.61% on the New York. Leading stocks were lower as well with the leaders index falling 2.86% on the day. The index closed in about the middle of its trading range on lower but above average volume. The market couldn’t build on yesterday’s positive reversal today. That is a pretty negative development. The major averages gapped lower at the open and although they closed well off the lows the inability to continue to rally points to lower prices ahead. Volume declined from yesterday’s unusually high levels, but the charts of the major averages and the leaders index look terrible. It seems pretty clear right now that we are in a bear market as the Nasd averages are almost at those levels. The New York averages are holding up better but will likely reach those levels as well. There will be rallies along the way, but I don’t think we have seen the bottom yet. Jerry