Leaders Index 4-15

The market got hit hard today, with most of the damage being done before the tragic events in Boston. The major averages declined between 2.30% on the SPY and 2.55% on the NYA. All the major averages closed on the lows of the session and volume was higher across the board. This produced distribution everywhere. The COMPQ is sitting on it’s 50dma and the NYA is below it. Leading stocks were crushed as the leaders index fell 4.74% on higher and well above average volume. The index finished at the lows of the day and just above it’s 50dma. With all the damage done to both the major averages and quality stocks it is hard to see how the market can recover from here(although you can never completely count out the Fed). IBD went to market under pressure and any further weakness will likely force them to call a correction. In addition we were only three new lows away from having a Hindenburg Omen signal today(if you are not familiar with this indicator just Google it and you will get several good explanations). After today’s action there is little reason to be long stocks and the safety of cash looks pretty good. Jerry