Leaders Index 8-20-15

The market really got pasted today. The major averages opened sharply lower and continued to sell off for the rest of the session. All the major averages closed at their intraday lows with the COMPQ losing 2.82% and the SPX fell 2.11%. Volume was much higher across the board, showing that large institutional players were heavy sellers. There was also distribution today on all the major averages. Leading stocks got hit as well with the leaders index down 3.75% on higher and well above average volume. This showed distribution in quality growth stocks as well. The index broke below it’s 50dma on heavy volume, usually a sign that a leading stock is broken. The index now has a pattern of lower highs in the chart and a declining trend line. The IBD fifty had no stocks higher today and the stocks up in volume on Marketsmith today were 14 while 839 were down on volume. The charts of the major averages are really ugly right now. The COMPQ joined the other major averages below their 200dma’s. The decline we are in now is worse than any we have seen in the trendless environment that has lasted a year and a half. The market could always turn around like it has done so many times recently when a correction looked like it was going to hit, but this one looks to have more force behind it than the others. I will be away for a few days, the updates will resume on Wednesday. Jerry