The market didn’t do much today. The major averages opened little changed and stayed there most of the day. It was a mixed close with the Nasd averages slightly higher and the New York averages lower. The COMPQ and the NDX gained .18% and .21% respectively. The SPX lost .38%. All the major averages finished in about the middle of their intraday trading ranges. Volume was lower across the board. It fell 18.25% on the Nasd and 9.45% on the New York. Leading stocks were higher on the day with the leaders index gaining 1.07% on the session. The index closed just below the midpoint of its trading range on lower but slightly above average volume. After a hit like we saw in the last two days you would expect to see a bounce. We didn’t get one today as the major averages were little changed. Yesterday had the feel of forced selling as everything got hit and margin calls were likely going out. Today’s action was weak as the market can’t get any anything going on the upside. The PPI came out today about as expected and had little effect on trading. We now wait for the Fed announcement tomorrow. The market seems to have priced in a 75 basis point increase. If it is just 50 basis points the market could see a relief rally. Even if it is 75 basis points there may be a relief rally just because it is over. We are certainly due for some kind of a snap back, but it will likely not go far and the downside action should resume. Jerry
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