Leaders Index 11-9-22

The election results that the market seemed to be pricing in during recent session didn’t materialize. There was no decisive win and at least the Senate is still in doubt. The market reacted negatively to this uncertainty and sold off hard. Most of the gains in the last few days were lost as all the major averages opened lower and sold off most of the day. All the major averages finished near their intraday trading lows. The COMPQ and the NDX lost 2.48% and 2.37% respectively. The SPX declined 2.08%. Volume was mixed, according to ToS. It gained 1.14% on the New York and declined 3.85% on the Nasd. This shows distribution on the New York averages. Leading stocks were hit as well with the leaders index falling 3.77%. The index closed low in its trading range on lower and below average volume. The market didn’t get a clear outcome from the election and didn’t like it. The selling was consistent during the day as recent gains were unwound. This adds a lot of uncertainty to the market hates this. It could be days before more results are known and one Senate race is going to a run off. The SPX had broken above its 50dma only to lose it again today. The rally looks pretty shaky. The CPI report comes out before the open tomorrow. If it is much different from expectations it will likely move the market. Jerry