Leaders Index 6-2

After a big decline it is important to watch the quality of the bounce. If the market rebounds with conviction the worst may be over. If the bounce is weak lower prices are likely ahead. We didn't even get a weak bounce today. The Nasd was up slightly but all the other major averages were down. Volume declined across the board. The leaders were up .74% on lower volume. The index couldn't get back above it's 50dma which is a big negative. Tomorrow's employment report will likely determine trading tomorrow. After the ADP report yesterday expectations are pretty low. It would take a really weak number to cause a real sell off but a better than expected number would probably trigger a rally. Jerry