Leaders Index 8-2

The market was hit hard today as the major averages were down between 2.25 and 3%. The market sold off into the close and finished at the lows of the day.Volume was very strong and was higher for the day and well above average. The major averages are all below the 200dma now and the NYA, which has been leading the market down is now below the bottom of the trading range we have been in since February. The leaders got hit as well with the leaders index down 2.56%, about in line with the market on higher volume. We are now close to breaking the necklines of the head and shoulders patterns in the major averages. The market looks like it is in very bad shape and while we certainly will have countertrend rallies, it looks like a serious correction is in the cards. Jerry