Leaders Index 2-3-22

The market got hit hard today in reaction to FB’s earnings announcements. The major averages opened with sizable losses and it was pretty much all downhill from there. The selling continued into the close and all the major averages finished near their intraday trading lows. The Nasd averages took the worst of it with the COMPQ and the NDX losing 3.74% and 4.22% respectively. The SPX fell 2.44%. Volume was lower across the board. It declined 2.67% on the New York and 7.49% on the Nasd. Leading stocks were lower as well with the leaders index falling 1.91% on the day. The index closed low in its trading range on lower and below average volume. The market sold off hard today after FB and several other companies issued disappointing earnings reports. The sell off was large and continued throughout the session. After the close today AMZN reported strong earnings and it looks like there will be a rally tomorrow. The roller coaster ride continues. We have had a bounce after the strong recent decline. Now we will have to see if there is any real staying power behind it. The major averages and the leaders index moved further away from the moving average resistance levels I talked about yesterday. The best thing you can say about today’s action is that volume was lower. This shows that large institutional players were not heavy sellers today. I remain skeptical of this rally, but you never know what the market is going to do. jerry