Leaders Index 6-24

The market sold off again yesterday, with the major averages all down in excess of 1%. Volume was very high, but this was more a result of the Russell rebalancing. Without that it would have been about average volume. Leaders sold off as well, but were down slightly less than the major averages, declining .97% on lower and slightly below average volume. We don't seem to be able to get even a weak bounce after the recent sell off and that is a big negative. Right now most asset classes are selling off including stocks, commodities and real estate securities. The only asset class going up is bonds. This is the type of action that signals an economic slowdown. The major averages are bouncing around their 200dma's. If they keep doing this without a real bounce they will likely break clearly below it. The market is whip sawing around on news stories, making it difficult to make money in either direction. I suspect the trend is down and the side lines is the safest place to be. Jerry