Leaders Index 8-25

The market opened strong then spent the rest of the day selling off. The major averages finished at the lows of the day, off between 1.5 and 2% on higher volume on the NYSE. This produced a distribution day for all the New York averages. This constitutes a second day distribution day that is almost always fatal to new rally attempts, especially in a bear market. The leaders declined about in line with the major averages with the leaders index declining 1.57% on light volume. This FTD seems doomed and although the market may go a bit higher in the short term it seems that lower prices are ahead. Jerry