Leaders Index 4-10

The market got hit hard today with the major averages all falling about 1.8% on much higher and above average volume. This produced distribution days on all the major averages while they closed at their lows of the day. There was real selling today as the SPY broke below it's 50dma and the COMPQ closed right at this important support level. Leading stocks got hit harder than the overall market as the leaders index fell 3.15% on the highest volume in almost a month. The index finished close to it's 50dma and the 9dma closed below the 17dma. Both the major averages and the leading stocks are badly broken and the real question now is how big a sell off we are going to have. About three quarters of all declines stop after an 8% fall that is the limit of a minor correction. If the market declines beyond this point( 2883 on the COMPQ) we will most likely be looking at an intermediate correction of between 12% and 16%. Jerry