Leaders Index 3-15-23

The market sold off at the open on more banking industry news. The major averages gapped lower at the open and went on to significant losses. Some buying came in late and the major averages finished mixed and high in their intraday trading ranges. The Nasd averages finished in the green with the COMPQ and the NDX gaining .05% and .42% respectively. The SPX declined .70%. Volume declined across the board. Leading stocks were hit pretty hard with the leaders index losing 2.95% on the day. The index closed in the upper half of its trading range on lower but still heavy volume. The market opened lower on news that Credit Suisse did not get additional capital from its largest investor, the Saudi government. This set off a wave of selling around the world. It is amazing that anyone didn’t know that Credit Suisse was in trouble, it has been for a long time. The market sold off hard but did recover much of the losses. The Nasd averages finished with small gains. The market is concerned now more with possible banking issues and is selling off. If the problem is contained the damage should be limited. If not it could get a lot worse. It is too early to tell. Interest rates dropped dramatically today as much lower Fed increases are priced in. 25 basis points next week is most likely and maybe nothing after that. The day’s overall action today would have to be considered negative. Jerry