Leaders Index 1-26-22

The market started out with a strong rally today ahead of the Fed announcement. The market was due for a snapback after the recent declines and it looked early like today would be a solid advance. The major averages started selling off before the announcement and the decline accelerated during the news conference. There was a little late buying and the major averages finished trading little changed. All the major averages finished low in their intraday trading ranges. The COMPQ and the NDX closed higher by .02% and.17% respectively. The SPX declined by .15%. Volume was higher across the board. It gained 1.76% on the New York and 17.25% on the Nasd. Leading stocks were a little higher today with the leaders index gaining .45% on the day. The index closed low in its trading range on volume that was little changed. The market looked early on like it would finally stage a solid rally after the recent weak action. The rally didn’t survive the Fed announcement and news conference. Powell took a pretty hawkish stance on ending QE and raising rates. He also talked about the balance sheet. The market reacted poorly to this and the upside action was lost. The market is acting unusually weak right now, and although there could be an oversold rally at any time, prices will likely go lower before an important bottom is in. Jerry