The market opened sharply lower in reaction to Friday's weaker than expected employment report. It set the intraday lows within a half hour of the opening and then rallied before selling off into the close. The Nasd closed near the middle of it's trading range while the New York averages finished near the lows of the day. All fell more than 1% on the day. Volume declined across the board so there was no distribution, but the MEM count dripped to +5 as the Nasd Composite closed more than .20% below it's 21dma. Leading stocks fell .74% on lower and below average volume. The index closed below it's 17dma, which is a big red flag for leading stocks. Both the major averages and leading stocks are taking on a much more ragged look and while neither has broken badly, the evidence that the rally is in real trouble is growing quickly. Jerry
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