Leaders Index 11-13-25

After holding up pretty well yesterday the market was hit hard today. The major averages opened lower and sold off all day. All the major averages finished low in their intraday trading ranges. The losses were considerable with the COMPQ and the NDX falling 2.29% and 2.05% respectively. The SPX declined 1.66%. Volume was higher across the board, producing a distribution day on all the major averages. Leading stocks were hit very hard. The leaders index fell 4.66% on the day. The index closed low in its trading range on higher and about average volume. The index remains below its critical 50dma. The market and the rally really took it on the chin today. The major averages opened lower and the selling continued all day. Real damage was done to both the major averages and especially leading growth stocks. Leading growth stocks, especially tech stocks, are getting hit particularly hard now and this is clearly not normal selling. The declines in individual leading stocks and baskets of leading stocks are severe. This is looking like it could become more than a minor correction. The line between a minor correction and the likelihood of an intermediate correction is 8% down from the high. We are close to that level. The major averages are also just above their important 50dma’s. Breaking this moving average would be very negative. Right now, a defensive posture is warranted. Jerry