Leaders Index 12-16-22

The market got hit again yesterday. The major averages opened lower and mostly worked their way down the remainder of the session. Late buying came in and all the major averages finished off their lows but low in their intraday trading ranges. The COMPQ and the NDX lost .97% and .89% respectively. The SPX declined 1.11%. Volume was higher across the board due to Friday being an expiration day. This produced a new distribution day on all the major averages. Leading stocks were lower as well but did better than the overall market. The leaders index fell .74% on the day but finished in the upper half of its trading range. Volume was higher and above average, due to expiration. The recent weakness continued yesterday with the market showing real losses even though it closed off the lows. It seems that many market participants are just waking up to the fact that if we are not already in a recession we will be soon. Recent support has been taken out as the major averages moved below important moving averages that have been support recently. It appears that the rally attempt that started in the major averages on the 10/13 low has failed and the next step for the major averages is a test of the lows of 10/13. If that level does not hold the market could go a good deal lower from there. There is very little to buy right now and recent actionable stocks have produced little in the way of gains. It doesn’t look like a year end rally is in the works, but that could always change in the last couple of weeks of trading for the year. I see little reason to be playing around in such a difficult market. Jerry