Leaders Index 5-9-22

The market was hit hard today as the bear market intensified. The major averages opened sharply lower and it was all downhill from there. The losses were large with the Nasd averages leading the way. The COMPQ and the NDX fell 4.29% and 3.98% respectively. The SPX declined 3.20%. All the major averages closed near their intraday trading lows. Volume was higher across the board. It gained 10.94% on the Nasd and 16.32% on the New York. Leading stocks were slammed even harder than the overall market. The leaders index fell 5.92% and closed near the lows of the day. Volume was higher and almost average. The FFTY declined even more by dropping 6.06%. The bear market is gathering strength as the current down leg takes the major averages to new lows for the bear. Even groups that have been leaders lately are starting to break down. In a bear market they get everyone eventually. Important support has been taken out and there is not much below to prevent the market from going lower. The market is showing unusual weakness recently. I said a while ago that when you identify that you are in a bear market the question becomes will it be a pretty standard bear of 20% to 30%, or will it be a real bone cruncher that will produce losses of 40% or more on at least one major average. It is looking like it will be a bone cruncher. We have a good way to go before we see an important bottom. Jerry