Leaders Index 7-27

The market took a big hit today. The major averages were down between 1.5 and 2.5% on very heavy volume. All the New York averages broke back below their 50dma's and the Nasd Composite dropped 2.65% as tech stocks were hit hard. The leaders dropped also with the leaders index declining 2.75% also on heavy volume. The index tagged its 50dma today but closed slightly above it. Most of the components of the index are broken. There will probably be a pop next week if and when a deal on the debt limit is reached, but I see little in the current environment that I would find encouraging. Jerry