Leaders Index 4-4

The market took a hit today. It declined hard at the open and was down all day despite a bit of a rally off the lows before the close. The major averages declined between 1% and 1.5% on higher volume across the board. This produced distribution days on all the averages. IBD went to market in correction, but the MEM remained fully invested at +6. It is interesting to see such a difference between the two. Leading stocks got hit as well but were down slightly less than the overall market with the leaders index dropping .97% on lower but still well above average volume. Only five stocks in the IBD 50 were up on the day. The market is clearly having some problems here but neither the major averages or the leaders have been hit that hard yet. It is certainly a time for caution, but still to soon to start selling wholesale. Jerry