Jerry Samet
09-21-2022, 06:32 PM
It was an interesting day. The major averages opened higher and held those gains until the Fed announcement. They then sold off and after the press conference started rallied to solid gains only to reverse and sell off hard into the close. All the major averages finished at their intraday trading lows as selling continued into the close. The COMPQ and the NDX lost 1.79% and 1.80% respectively. The SPX declined 1.71%. Volume was higher across the board. It gained 14.19% on the Nasd and 3.87% on the New York. Leading stocks were lower as well with the leaders index falling .92% on the day. The index closed near the bottom of its trading range on lighter volume. Interestingly enough the smaller decline today than the overall market saw the relative strength line of the leaders index make a new high. The market was higher until the Fed report came out pretty hawkish. There was a big decline into the news conference and Powell was pretty hawkish there too. The major averages rallied to solid gains and then reversed lower and sold off into the close. The declines were large and on higher volume. This shows that large institutional players were selling stocks today. The major averages made new lows for the move and it appears that a test of the June lows is in our future. Powell was surprisingly harsh in his press conference and the market is pricing in more rate increases this year and not much hope of rate cuts next year. The next test will be weather the June lows hold. Jerry