Leaders Index 2-12-26

The market got hit hard today, with losses across the board. The major averages opened a bit higher, but selling came in and lasted all day. All the major averages finished low in their intraday trading ranges. The COMPQ and the NDX fell 2.03% and 2.04% respectively. The SPX lost 1.57%. Volume was mixed, higher on the New York and lower on the NASD. This produced a new distribution day on the New York averages. Leading stocks sold off as well. The leaders Index fell 2.22% on the day. The index closed low in its trading range on higher and above average volume. The index held its 17dma. The market sold off hard today, and the selling was pretty much across the board. Everything got hit. The strong two day rally in the major averages last Friday and Monday has mostly been wiped out. The SPX joined the NASD averages below their 50dma’s. It has looked like a mixed market for some time with indicators pointing in both directions. Today’s action reinforces the negative case. I have said that it could go either way at this point, and it is starting to look like the break is most likely to be on the downside. You never know how the market will react, and there is a CPI report tomorrow, but caution is warranted right now. There will be no update tomorrow. Jerry