Leaders Index 10-3

The market got slammed again today with the major averages declining between 2.36% and 3.29% on higher volume across the board. This shows that big players were selling and there was distribution every where. The market opened lower and was down all day and a sell off into the close caused the major averages to close at the lows of the day. The SPY and NYA set new lows for the year and are below the bottom of the recent consolidations. Leaders were hit especially hard with the leaders index declining 5.18% on heavy volume. The index fell further below the 50dma and has now had three big down days on heavy volume in a row. Even the few stocks that were resisting the decline up until about a week ago have broken down so there is virtually nothing that is holding up. We are probably short term oversold, but it looks like the next down leg in the bear market is under way. Jerry