It was an ugly session today. The CPI came in higher than expected and the market gapped down at the open. It was mostly sideways for the rest of the day with the major averages finishing in the upper half of their intraday trading ranges. The COMPQ and the NDX fell .84% and .87% respectively. The SPX declined .95%. Volume was higher across the board, producing a new distribution day on all the major averages. Leading stocks were lower as well with the leaders index falling .78% on the day. The index closed in about the middle of its trading range on higher but below average volume. The market was hit pretty hard at the open after the CPI report came in above expectations. The market is pricing in fewer rate cuts this year and most likely later in the year. Both the major averages and the leaders index have broken support and their charts, after holding up, are starting to look a little iffy. Market internals today were very negative and the small and mid-cap averages broke below their 50dma’s today. The PPI comes out tomorrow and earnings season begins on Friday. There will be volatility from them, but it looks like the market is in the early phases of a correction. Jerry
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