The market had a somewhat mixed session today, but overall it was not encouraging. After a tamer than expected PPI report the market rallied early, but it didn’t hold. Selling came in and all the gains were lost. The major averages traded around all day and closed mixed but little changed. All the major averages finished in the lower half of their intraday trading ranges. The COMPQ and the NDX lost .23% and .13% respectively. The SPX was higher by .11%. Volume was lower across the board. Leading stocks had a good day with the leaders index gaining 2.09% on the session. The index closed in about the middle of its trading range on higher but below average volume. The index also closed right on its 50dma. The PPI report came in well below expectations before the open and the futures rallied. The market opened strong, and in a good market the major averages would have rallied during the day and closed strong. That didn’t happen today. Early gains were lost and the major averages finished little changed. It would have been encouraging to see that market react well to good news. The market is clearly struggling and may take some time to set up for a new rally. Until then a defensive position is warranted. Jerry
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