The market had a strong session today, at least on a price basis. The major averages opened higher after a slightly weaker than expected PPI report. They worked their way up most of the session and all the major averages finished near their intraday trading highs. The COMPQ and the NDX gained 1.68% and 1.65% respectively. The SPX was higher by .74%. Volume was lower across the board. Leading stocks rallied as well with the leaders index up by 1.31%. The index closed high in its trading range on lower and below average volume. The market rallied nicely today after the PPI report came in less than expected. It may have been a bit of a relief rally after the PPI didn’t come in higher like the CPI. The fact that volume was lower on the bounce than the selloff yesterday is not a good sign. The major averages continue in the sideways pattern they have been in for several weeks. Earnings season starts tomorrow with several big banks reporting and that will effect the market in the short term. I still believe that the resolution of this consolidation will be to the downside, but it will likely be bumpy. Jerry
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