The market had a bit of a wild ride yesterday. The major averages opened little changed to slightly down. The major averages rallied to moderate gains before selling came in. The major averages reversed lower and sold off into the close. All the major averages finished near their intraday trading lows. The COMPQ and the NDX fell .13% and .35% respectively. The SPX declined .29%. Volume was lower across the board so there was no new distribution today. Leading stocks were actually higher on the session with the leaders index gaining .60% on the day. The index was also hit by late selling and closed low in its trading range. Volume was about flat with Thursday. The market was hit by late selling yesterday that erased early gains. The selling pressure however was not that great. Volume was lower across the board, showing that large institutional players were not heavy sellers yesterday. It also avoided another distribution day. Market internals were strong even as prices of the major averages fell. The employment report came in weaker than expected and countered the stronger than expected ADP report on Thursday. The market has pulled back a bit in the last couple of days, but so far the damage has been limited. The distribution count is still not at worrisome levels, but it is getting high on the New York averages. Right now the rally appears to be intact, as long as the selling doesn’t get much worse. Jerry
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