Leaders Index 12-28

The market sold off pretty hard today as the major averages dropped between 1.25% and 1.5% on the day. Volume rose across the board so there was distribution on all the major averages. This is the second day of distribution, in addition to the stalling day yesterday since the FTD last Tuesday. The S&P 500 fell back below it's 200dma , joining the other major averages below this important resistance level. There was also a Phoenix signal today that cancels out the Eureka of the FTD last Tuesday. Leading stocks fell about in line with the major averages as the leaders index fell 1.4%, also on higher volume. The day's action is not encouraging and it puts more pressure on the rally attempt. Jerry