Jerry Samet
04-12-2022, 06:27 PM
The market opened strong today on a surprisingly good reaction to the CPI report. It didn’t last long as the major averages quickly reversed lower and sold off for most of the day. All the major averages finished near their intraday trading lows. The COMPQ and the NDX fell .30% and .36% respectively. The SPX declined .34%. Volume was mixed. It gained 2.26% on the Nasd and declined 2.66% on the New York. This produced a distribution day on the Nasd averages. Leading stocks outperformed the overall market today with the leaders index gaining 2.00% on the day. The index closed low in its trading range on higher but below average volume. The market had a pretty nasty negative reversal today. There were strong early gains after the CPI report, but they reversed and sold off into the close. There was a new distribution day on the Nasd averages, so the count is building. The market is showing unusual weakness right now as it can’t stage any kind of rally after significant declines. The major averages are below all their moving averages and the next stop seems to be the recent lows. The recent follow through looks pretty clearly like a failure now and we should work our way down from here. I am going to take a couple of days off before the holidays so the updates will resume on Monday. I hope everyone has a good Passover and Easter. Jerry