The market continued to sell off early, but in contrast to recent sessions the major averages found a bottom and rallied the last couple of hours and recovered all or most of the early losses. All the major averages finished near their intraday trading highs. The new York averages got into positive territory with the SPX higher by .30%. The NDX was flat with a gain of .02% while the COMPQ declined .26%. Volume was higher across the board. It gained 6.07% on the New York and 7.51% on the Nasd. This was enough for a distribution day on the Nasd, even though the strong close mitigated the damage. Leading stocks were off mare than the overall market, but also saw late strength. The leaders index fell 1.95% and finished in the upper half of its trading range. Volume was lower and slightly above average. The market looked like it would continue its recent negative action, but today prices reversed higher and early losses were mostly erased. This may mean we could get a bounce here after recent strong selling, but I don’t think it will change the overall direction of the market. It is possible the major averages could rally back to their respective 50dma now resistance levels, but it would be hard to overcome this important moving average. The employment report comes out before the open tomorrow and that will set the tone for trading tomorrow. Jerry
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