Leaders Index 9-2-22

The market staged a negative reversal yesterday. The major averages opened higher and went on to some solid gains. Selling came in , possibly after Putin cut gas supplies to Europe, and the major averages sold off into the close. All the major averages finished near their intraday trading lows. The COMPQ and the NDX fell 1.31% and 1.44% respectively. The SPX lost 1.07%. Volume was lower across the board, as you would expect on the Friday before a long holiday weekend. This avoided distribution on all the major averages. Leading stocks were lower as well with the leaders index declining .87% on the day. The index closed in the lower half of its trading range on lower and below average volume. The market continued to show real weakness yesterday. After the employment report came out about in line with expectations the market started to rally nicely. Selling came in, possibly after Russia reduced gas supplies to Europe, and all the gains were lost. The market is showing real weakness. Its inability to stage any kind of a rally after declining so much is concerning. The SPX tagged its 50dma at its early highs while the Nasd averages came close. It looks like they will be turned back at this resistance level. It looks like the market will go down and test the June lows. I wouldn’t bet that they will hold. Jerry