Leaders Index 9-16-22

It was another negative session for the market. The major averages opened lower and stayed down most of the day. Some late buying came in and the major averages finished high in their trading ranges, but still lower due to the gap down at the open. The COMPQ and the NDX lost .90% and .55% respectively. The SPX declined .72%. Volume increased considerably due to yesterday being an expiration day, but it still was enough for distribution on all the major averages. Leading stocks were hit as well with the leaders index falling 1.89% on the day. The index closed in the upper half of its trading range just above its 50dma. Volume was much higher and above average. The negative action continued yesterday as the major averages fell below the lows of last week. Volume was higher due to it being an expiration day, but it still counted as distribution. IBD finally threw in the towel and called the market in correction. The market took out the lows of last week before the four day rally and the next target is the June lows. The leaders index traded below its important 50dma for the first time since the rally attempt started but managed to close just above this support level. The Fed meeting is next week with the announcement on Wednesday. 75 basis points is pretty much baked in, but you never know how the market will react to Powell’s press conference. It looks like we will test the June lows. I wouldn’t want to bet that they will hold. Jerry