Leaders Index 6-6

We had another pretty negative day today. The market was down all day and sold off into the close to finish at the lows of the day. Volume was about unchanged from yesterday. The leaders got hit a lot harder than the major averages, dropping 2.35% on heavier and above average volume. The leaders are completely broken, which is bad for the market outlook. The major averages and the leaders index are now looking like they are developing head and shoulders patterns.The important thing to look for now is how far this correction will go. The vast majority of corrections are contained at the 8% level, which is a fairly minor correction. If we go past the 8% level, which would be 2656 on the Nasdaq we will probably be looking at an intermediate term correction of 12-15%, or worse. Jerry