Leaders Index 9-30

The market opened lower and was weak all day. The major averages declined about 2.5% on mixed volume, higher on the NYSE and lower on the Nasd. This produced distribution on the New York averages. Leading stocks were hit harder than the overall market with the leaders index declining 2.9% on heavy volume. The index broke below the 50dma on heavy volume, which is a very negative development. There is no real leadership in the market at all and I said this would likely be the shortest lived leaders index of all. It looks like we are breaking below the consolidation we have been in after the first down leg of this bear market and may well be going into the second leg down. Jerry