Leaders Index 10-17

The market sold off hard on Monday on comments from the German's that a deal to recapitalize European banks is not at hand. The major averages sold off about 2% and closed near the lows of the day. Volume increased across the board so this was a distribution day on all the major averages. This is a third day after the FTD distribution day which is usually bad news for a rally attempt. Leading stocks sold off more than the overall market with the leaders index declining 2.61% on higher and above average volume. This was the second day of distribution on the leaders index in the last four. We will have to see how the market reacts in the next few days, but today was not a good sign. Jerry