Leaders Index 8-1

The futures rallied overnight after the debt limit deal was announced and the market opened higher as expected. The rally lasted five minutes and then started selling off. When the ISM report came out a half hour after the opening the market sold off hard and all the major averages were down over 1%. The market started coming back as it looked like Congress would approve the deal but everything closed down on the day. Volume was slightly less than yesterday but was still above average. All the major averages are either near or below their 200dma's and it seems the 50dma's that were providing support are now resistance. The leaders did better as the leaders index rose .90% on about flat volume. The index is holding it's 50dma and thus acting better than the market as a whole. The fact that we got no bounce after the debt limit deal and the major averages are breaking important support is not encouraging. Jerry