The market put in a difficult session today. The PPI report came in higher than expected and the market, while opening slightly higher, quickly sold off. Some late buying saw the major averages finish off their lows, but still finishing low in their intraday trading ranges. The COMPQ and the NDX fell .30% each while the SPX declined .29%. Volume was higher across the board, producing new distribution days on all the major averages. Leading stocks were lower as well with the leaders index declining .34% on the day. The index closed high in its trading range on higher and above average volume. The market didn’t do to well today after the PPI came in higher than expected. The declines in the major averages were moderate, but there were larger losses in the small and mid-cap averages. If you look at the charts of the major averages and the leaders index they look alright, but the market doesn’t seem to have the strength that it has during the rally. The market hasn’t rolled over, and it still may not until it goes higher, but the rally feels like it is losing steam. I would be more interested in protecting gains than trying to build on them. Jerry
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