Jerry Samet
12-13-2022, 06:30 PM
The CPI numbers came in lower than expected and the market opened strong. The major averages gapped up at the open and produced large early gains. It didn’t last long as within a half hour the major averages topped out and spent most of the remainder of the session working their way down. All the major averages finished near the bottom of their intraday trading ranges, even though they closed in positive territory. The COMPQ and the NDX gained 1.01% and 1.09% respectively. The SPX was higher by .73%. Volume was a lot higher. It gained 30.36% on the New York and 26.29% on the Nasd. Leading stocks were higher as well with the leaders index gaining .83% on the day. The index closed in the upper half of its trading range on higher and above average volume. The market saw strong gains early as the inflation numbers came in below expectations. The gains didn’t last long and although the major averages finished with gains, the bulk of the early gains were lost by the close. Selling came in as prices rose and drove them lower. The fact that the market couldn’t hold the gains is negative. There were several breakouts early but most had pulled back by the close. The SPX regained its 200dma early, but soon lost it and closed back below this important resistance level. Today’s action continued the difficult trading we have seen since the follow through. Gains are hard to come by and are small when they do come. This is not the kind of market you want to get to aggressive in. The rally is still in force but it isn’t producing many worthwhile gains. Tomorrow the Fed announcement comes out and that will set the tone of trading. Jerry