Leaders Index 10-25

The market sold off hard today, reversing yesterday's gains as the news from Europe was disappointing. The market declined into the close and the major averages finished at the lows of the day. Volume was mixed with a decline on the Nasd and a higher volume on the NYSE. This produced a distribution day on all the New York averages. Leading stocks fell along the the overall market as the leaders index fell 4% on lighter and below average volume. There is a pattern of lower highs in the index and the RS line continues to weaken. The COMPQ lost it's 200dma today so all the major averages are below this important resistance level. We continue to be caught in this cycle of rising and falling based on the headlines from Europe, making it a difficult market. Jerry