Leaders Index 5-8

The market sold off hard early and was down all day. Although we still closed with meaningful losses a late rally took the major averages up to close near the highs of the day. Volume increased quite a bit across the board, which is not what you want to see on a decline, but the late rally took some of the sting off the decline. The MEM remained at +1 because the COMPQ closed at 2946.27, above the last market low of 2946.04. Leading stocks had a rough day but also finished well off their lows. The index closed below the 17dma and was below the 50dma most of the day until the late rally brought it back above this important support level. The action of the market continues to look weak, and support levels that held today are likely to be broken in the near future. Jerry