Leaders Index 9-26-22

The selling continued today with another ugly session. The major averages opened a little higher, but couldn’t hold the gains. Selling came in and all the major averages finished near their intraday trading lows with decent losses. The COMPQ and the NDX fell .60% and .51% respectively. The SPX lost 1.03%. Volume was lower across the board, not surprising after Friday’s heavy trade. Leading stocks lost ground as well with the leaders index falling 1.24% on the day. The index closed low in its trading range on lower and below average volume. The market is acting very weak right now. Two important averages, the INDU and the NYA, have broken below their June lows. All the other major averages are just a touch above this important support. I don’t think the June lows will hold for any of the major averages. The market is showing unusual weakness right now. Even after big declines there is a complete inability to bounce. It seems pretty clear that we are in the third leg of this bear market. The third leg has a tendency to be the worst and can have some pretty fast and scary declines. We are seeing that type of action now. Its hard to say how far the decline will go and we could get a bounce at any time, but lower prices are almost certainly ahead. Jerry