Leaders Index 2-26

The market bounced back from yesterday’s sell off, but it was a pretty weak bounce. The major averages were up between .43% on the COMPQ and .61% on the SPX. Volume was lower across the board showing there was little conviction in the advance. This continued the pattern of sell offs on higher volume and rebounds on lower volume. This is not the pattern you usually see in an advancing market. Leading stocks underperformed the overall market as the leaders index rose only .23% on lower but slightly above average volume. The 9dma is about to break below the 50dma and the 17dma is not far behind. The index has now traded below it’s 50dma for four days and is now living below it. The correction is deepening and it looks like lower prices are ahead. Jerry