Leaders Index 9-28

The market started off strong today but we then had a nasty reversal and then spent the rest of the day selling off. The major averages closed at the lows of the day with volume slightly lower than yesterday. This means there was not official distribution today, but it sure felt like there was. Leading stocks sold off harder than the overall market with the leaders index declining 2.32% on lower volume. Only two stocks in the IBD 50 were up on the day. None of the major averages have been able to regain important resistance levels such as the 50dma, and it is pretty hard to be anything but negative on the prospects for the market. Jerry