Jerry Samet
04-05-2022, 06:45 PM
The market took a pretty good hit today. The major averages opened little changed but sold off after some hawkish comments from a Fed official. The selling continued into the close and all the major averages finished near the bottom of their intraday trading ranges. The Nasd averages declined the most with the COMPQ and the NDX losing 2.26% and 2.24% respectively. The SPX declined 1.26%. Volume was higher across the board. It gained 1.58% on the Nasd and 5.29% on the New York. This combined with the price declines was enough for a distribution day on all the major averages. Leading stocks were hit hard as well with the leaders index falling 2.39% on the day. The index closed low in its trading range and is now well below its 17dma. Volume was higher, showing distribution in leading stocks as well. The day’s action was pretty negative. The major averages suffered real losses on higher volume. This shows that large institutional players were selling stocks today. The NYA broke below its 200dma, while the SPX remains just above this important moving average. Today’s action puts the rally on more shaky ground. Leading stocks are generally not acting well and the major averages are having trouble with support and resistance levels. The A’s minus E’s turned down yesterday and the Summation Index is close. The rally is still on, but there are warning clouds on the horizon. Jerry