Leaders Index 11-16

The market opened down today and spent most of the day bouncing around unchanged until it sold off hard in the last hour. It seems a report from Fitch said that American banks would be negatively effected if the crises in Europe was not resolved in a timely manner. Who knew? The major averages declined over 1.5% and finished at the lows of the day. Volume increased across the board and was just below average. This produced distribution days for all the major averages. The distribution days are piling up and the market school count dropped to +3. Leading stocks declined more than the overall market with the leaders index falling 2.25% on very low volume. The leaders index remains in a trading range and the major averages seem to be unable to break above important resistance at their 200dma's. After having failed to break above this level after several tries the odds that the rally is in trouble are increasing. Jerry