Leaders Index 5-9

The market fell hard early and like yesterday spent much of the rest of the day rallying back. After coming close to breakeven the major averages sold off into the close, but still closed in the upper half of the day's trading range. Volume was down slightly on the Nasd and up slightly on the NYSE. This produced distribution days on all the New York averages. The Nasd also closed below it's last market low which took the MEM exposure count to zero and turned off the buy switch. Leading stocks also sold off early but rallied back to close in about the middle of the day's trading range on the leaders index. The market continues to act sloppy but has held near term support, particularly at the 2900 level. Recent action is not encouraging and cash is the place to be. Jerry