Jerry Samet
12-18-2024, 07:02 PM
It was an ugly day to say the least. The major averages opened mixed but were a little higher ahead of the Fed announcement. That changed quickly, especially when the press conference started. Selling came in strong and all the major averages finished near their intraday trading lows. The losses were substantial with the COMPQ and the NDX declining 3.56% and 3.66% respectively. The SPX lost 2.95%. Volume was higher across the board, producing new distribution on all the major averages. Leading stocks were hit hard as well with the leaders index falling 3.55% on the day. The index closed low in its trading range on lower and below average volume. The market really got slammed after the Fed announcement and news conference. There was a 25 basis point cut as expected, but they basically said there would be fewer rate cuts next year than previously thought. The selling came in hard and strong. Volume was higher showing that large institutional players were selling stocks. A lot of damage was done in the charts of the major averages and the leaders index. The rally is in real jeopardy right now. It has been weakening for about a week now, but the damage was contained until today. The movements on Fed announcement days are often reversed in the next couple of days, but today’s action was particularly bad. It is likely time to reduce holdings and even more if the market doesn’t bounce back quickly. Jerry