Leaders Index 8-10

After another wild day today the market sold off hard into the close and finished at the lows of the day. The major averages declined between 4% and 4.5% on lower but still very high volume. Renewed worry about the European debt crisis seems to be the cause of the sell off and the market is back down to its lows of the move. The leaders did better than the overall market with the leaders index declining 1.41% on lower but still strong volume. The index remains below the 200dma and it looks like this important moving average will be significant resistance. It looks like the recent action has settled the question of whether or not we are in a bear market. The real question now is what type of bear it will be. Will it be an average bear in the 20% to 25% range, or will it be another bone cruncher of 50% plus. There is a lot of evidence that points to the latter. J