Leaders Index 7-8-11

The market sold off yesterday after a very weak employment report. After early weakness the market spent the rest of the day working it's way higher. Frankly considering how bad the employment report was I am surprised at how mild the sell off was. Volume was also lower across the board so there was no distribution day. The leaders held up very well as the index actually rose slightly on very low volume. The 17dma is now slightly above the 50dma, which is a good sign. The major averages are now only fractionally below their last May highs and the Nasd 100 broke slightly above it. If the major averages can break above these previous highs with conviction it will invalidate the head and shoulders patterns and point to higher prices. If not the topping patterns will be in place and that will be negative for the markets. Next weeks action should tell us a lot. Jerry