Leaders Index 6-5

The market took another sizable hit today. After being lower all day the major averages were weak late and finished the day at their intraday lows. This continued the pattern of weak closes. IBD had volume up slightly on the NYSE and down on the Nasd, producing distribution on the New York averages. Esignal had volume the opposite, rising on the Nasd and slightly lower on the NYSE. Leading stocks took a big hit today as the leaders index fell 2.4% on higher and well above average volume. Only four stocks in the IBD 50 were up on the day. Today’s action under cut the recent low of 5/23 in the index, confirming the pattern of lower highs and lower lows. Both quality stocks and the major averages are looking pretty sickly and the NYA broke below it’s 50dma today. It looks like the rally that began after Thanksgiving is dead, the bigger question now is if the cyclical bull that began in March 2009 is dead also. That question will be answered by the market’s action in the weeks and months ahead. Jerry