Leaders Index 7-8-14

The market had another ugly decline today. It opened lower and was down all day. A slight rally late in the session allowed the major averages to finish off their lows but still near the bottom of their trading ranges. The COMPQ was off 1.35% on the day while the SPY was lower by .70%. Volume was dramatically higher, showing that institutional players were selling stocks. Leading stocks were also hit hard for the second day in a row. The leaders index was off by 2.12% and volume was very strong and well above average. The index closed off it’s lows and about in the middle of it’s trading range. It did how ever come crashing below it’s important 17dma on heavy volume. This is a break of important support and is very negative for quality growth stocks. Distribution days on the major averages are piling up and good breakouts are failing in significant numbers. When rallies get into trouble it can happen quickly and months worth of gains can disappear in days. Even so the speed of this roll over is surprising. The rally is in real trouble and even if the fat lady hasn’t sung yet you can hear her clearing her throat. Jerry