Leaders Index 10-26-22

The market held up better than it could have today, considering the negative earnings reports yesterday from GOOGL and MSFT. The major averages opened lower but found a bottom and rallied to some decent gains in the New York averages. Selling came in and the major averages sold off into the close, finishing near the bottom of their intraday trading ranges. The COMPQ and the NDX fell 2.04% and 2.26% respectively. The SPX declined .74%. Volume was higher across the board. It gained 3.82% on the Nasd and .89% on the New York. Leading stocks did a bit better than the overall market with the leaders index gaining .27% on the day. The index closed low in its trading range on higher and above average volume. The market actually did a little better than you would expect after the poorly received earnings reports yesterday. The real damage was in the Nasd averages, as you would expect. The action was negative overall. The market tried to rally during the day but couldn’t, closing low in its trading range. The higher volume amounted to distribution on all the major averages. This is distribution on the third day after a follow through. Distribution so close to a follow through is very negative. The SPX traded over its 50dma at its highs but couldn’t hold it. The Nasd averages have not reached this important moving average. META’s earnings came out after the close and they are not being well received. The stock is sharply lower in after hours trading. Interestingly though the futures of the Nasd averages are holding close to unchanged. The market is showing some resilience, but it is struggling also and there are a lot of news items in the next couple of weeks that could cause a big move in either direction. There are some interesting stocks out there, but the risk level is high. Jerry