Leaders Index 7-28

The market had a nasty reversal today. It started out strong and it looked like we were going to have a rebound after yesterday's sell off. We then spent the rest of the day giving it all back and then some. The major averages closed near the bottom of their trading ranges on lower but still solid volume. The leaders did a bit better, rising .41% on lower volume. The leaders index is sitting on the 50dma and if it breaks below this support it will be a big negative for the market. The NYA is sitting on the 200dma and the head and shoulders patterns in the major averages seem to be intact for now. We may well see a pop in the market if and when a debt limit agreement is reached, but I suspect this will only be a very short pop and we will head lower from there. Jerry