Leaders Index 11-9

After two days of strong declines you would expect to see a bounce. The quality of the bounce is important in trying to determine is the decline will continue. We got what looks like a pretty pathetic bounce attempt yesterday. All the major averages were up a tiny amount on volume that was lower across the board. The SPY tried to get back above it’s 200dma but was unable to do so. The COMPQ had a small advance but still remains well below it’s 200dma. Leading stocks didn’t do much either as the leaders index rose .10% on lower and well below average volume. The 50dma on all the major averages have now turned down which shows real weakness in the market. The COMPQ is now more than nine percent below it’s recent peak and it looks like at least an intermediate term correction, if not a bear market is in the cards. Jerry