The market took a big hit yesterday. The employment report came in strong and sent the market lower. The major averages opened lower and mostly sold off during the day. All the major averages finished in the lower half of their intraday trading ranges. The COMPQ and the NDX fell 1.63% and 1.57% respectively. The SPX lost 1.54%. Volume was mixed, lower on the NASD and higher on the New York. This produced another distribution day on the major averages. Leading stocks were lower as well with the leaders index falling 1.06% on the day. The index closed high in its trading range but just below its 50dma. Volume was lower and below average. The market reacted badly to a stronger than expected employment report. It is pricing out more rate cuts and the futures say there will not be one until October. The rally is certainly over and we now must see how big a correction we are looking at. So far it is small, but the 8% mark is important. If it passes that an intermediate term correction is likely. Preserving capita is the order of the day. Jerry
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