After two very weak sessions you would like to see a bounce. It didn’t happen today. In what was an overall quiet day the major averages opened with small declines and mostly traded in negative territory all day. All the major averages finished in the lower half of their intraday trading ranges. The Nasd averages were the weakest with the COMPQ and the NDX falling .51% and .45% respectively. The SPX declined .19%. Volume was lower cross the board. Leading stocks were mostly lower as well with the leaders index falling .47% on the session. The index closed in about the middle of its trading range on slightly higher volume. The index tagged its 50dma during trading but held above it. It was a pretty quiet session as the major averages mostly traded with small losses most of the day. Volume was lower so large institutional players were not heavy sellers today. The fact that the market was unable to rally after two large down sessions shows some real weakness. The rally is still technically in force, but it seems to be going nowhere. The PPI comes out on Friday and there will be a heavy news calendar next week. Right now it looks like the market will head lower from here, but with all the news coming out you never know. A defensive position is warranted. Jerry
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