The market was hit hard today after it was not impressed with the Fed's new version of the twist. The major averages dropped between 2% and 3% on much higher volume and ended at the lows of the day after a late sell off. The Nasd declined well below recent resistance at 2600 and the 50dma. I put together a new leaders index today as so many stocks in the old one were so badly broken that it was tough to call them leaders with a straight face. This was a difficult index to build because it was frankly tough to find enough stocks to fill out a proper index. That alone says a lot about the market. I think it will be a short lived index. This index has 20 stocks in 16 different industry groups. These are the strongest stocks out there now and I think it will give good notice of market direction. Things are looking pretty bad now and the long side should be viewed with skepticism. Jerry
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