Leaders Index 4-16

We had a generally negative day today. The major averages were mixed with the Compq taking a hit while the New York averages were stronger. Volume was mixed with it being slightly lower on the NYSE and higher on the Nasd. This produced a distribution day on the Compq and it's first close under the 50dma since the FTD last December. Leading stocks got hit harder than the overall market as the leaders index fell 1.12% on very high volume, producing the second big red candle in a week. Many of the best leaders, like AAPL,PCLN, LNKD, and KORS were hit hard and are now looking like they are broken. The MEM count was reduced to +1 as we got another distribution day and a close below the 50dma. The power trend is now off. With the market leading major average now joining the others below the 50dma and leading stocks acting worse, it is looking more and more like the rally is over and we must now look at how bad the correction will be. Jerry