Jerry Samet
07-11-2022, 06:36 PM
The recent positive market action hit a wall today as the market sold off hard. The major averages opened lower and were down most of the remainder of the session. All the major averages finished near their intraday trading lows. The Nasd averages were hit the hardest with the COMPQ and the NDX falling 2.26% and 2.19% respectively. The SPX lost 1.15%. Volume was lower across the board so distribution was avoided today. Volume fell 4.75% on the Nasd and 5.15% on the New York. Leading stocks sold off as well with the leaders index falling 1.49% on the day. The index closed in the lower half of its trading range on slightly higher volume. The index also was turned back at its 9dma. The market sold off today from the open. Many said it was problems in China, but it really doesn’t matter. The Nasd averages were turned back at their declining 50dma’s, so this resistance level is still intact. The SPX has not yet reached this important moving average. There are a lot of cross currents now as several short term indicators have turned up, but the market can’t get much sustained action on the upside. Earnings season starts this week, but the main concern this week is the inflation numbers. The CPI comes out on Wednesday and the PPI on Thursday. They are the critical numbers for this week. Jerry