The market tried to bounce after recent weakness, but it didn’t hold. The major averages made a feeble rally attempt, but late selling came in and they all finished near their intraday trading lows. Weakness in tech stocks after a couple of downgrades of AAPL saw the Nasd averages lead the way down. The COMPQ and the NDX declined .56% and .53% respectively. The SPX fell .34%. Volume was lower across the board so the major averages avoided distribution. Leading stocks rallied with the leaders index gaining .91% on the day. The index closed low in its trading range on lower and below average volume. The market was unable to rally after recent declines. This is a sign that the decline is not over. Market internals were not bad today, but modest early gains in most averages except the Nasd averages faded by the close. It looks like there is more to go in this pullback, but so far the damage does not seem to have changed the overall picture. If the selling continues much longer this could change. The employment report comes out before the open tomorrow and that will set the tone for trading. Jerry
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