It was another overall disappointing session today. The major averages gapped lower at the open on stronger than expected economic news. They bounced around before some late buying saw the major averages finish high in their intraday trading ranges. The COMPQ and the NDX fell .95% and .94% respectively. The SPX lost .72%. Volume was mixed, falling on the Nasd and rising on the New York. This was enough for a new distribution day on the New York averages. Leading stocks were lower as well. The leaders index fell .51% on the day. The index bounced off its 17dma support and closed high in its trading range. Volume was lower and below average. The market was weak overall today as hopes for a June rate cut fade. There was some late strength that saw the major averages and the leaders index close high in their trading ranges, so the decline was all in the opening gap. The action today was not encouraging. The market priced in fewer rate cuts earlier this year and did well. It is looking like it will have to price in even fewer cuts. The rally is clearly under stress, and I would expect the outcome to be a correction of still unknown magnitude. Jerry
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