Leaders Index 7-14

The market opened higher and again spent the rest of the day selling off. The major averages closed near their lows of the day for the third day in a row. Volume was higher across the board, producing distribution days on all the major averages. The SPY and NYA are back below their 50dma's and the rest are very close. The leaders sold off more than the major averages with the leaders index declining 1.67% on slightly less volume. The big red candle is a negative sign. The A's-E's/Total turned down today, which I have been using as a signal of real distribution in the market. Overall it looks like the potential head and shoulders pattern seems to be falling into place, and the outlook in my opinion is is becoming more negative. Jerry