Leaders Index 8-4

The market got pretty thoroughly trashed today with the major averages all down in the 5% range. There was a strong sell off into the close and everything finished at the lows of the day. Volume was very strong and the highest since the recent consolidation began. All the major averages have now broken below the lows of the consolidation that began in Feb. and completed their head and shoulders patterns. The leaders got hit even harder with the leaders index down 6.98% on very heavy volume. The market is now down more than 10% on the major averages, and although we may well see a bounce due to the oversold condition it certainly looks like we have lower prices ahead. Jerry