Leaders Index 8-8

The market got really pasted today with the largest decline in the major averages since September of 2008. Volume was massive at the highest level in over a year. There seemed to be more forced selling today with everything continuing down except precious metals and bonds, as everyone (mostly Europeans) running to the perceived safety of Treasury securities. The major averages were down hard all day and sold off into the close to finish at the lows of the day. The NYA closed down 21% from its recent highs, putting this important index in bear market territory. The other major averages are down over 18%. The leaders were hit harder than the overall market with the leaders index down 9.19% on lower but still way above average volume. We are heavily oversold now so we are certainly due to have a strong snap back rally that could take us back up to the first real resistance level at the 200dma. The real question now is how bad will this bear market be and what will the first intermediate term rally of this cyclical bear look like. Jerry